That is the connector for the stator to the regulator/rectifier. The yellow wire side should go through the left side engine case and the grey side should got to the R/R.
It looks like its seen some heat and is melting. This can happen when the connections are loose or dirty which will build resistance and generate heat.
Are you having electrical issues with your bike? Specifically charging system issues? I suspect that if you are not now, you will be soon.
I would take voltage and resistance readings for the electrical system to see if there is an issue. And I would, at a minimum, clean/inspect and grease the heck out of that connector if not replace it.
It looks like its seen some heat and is melting. This can happen when the connections are loose or dirty which will build resistance and generate heat.
Are you having electrical issues with your bike? Specifically charging system issues? I suspect that if you are not now, you will be soon.
I would take voltage and resistance readings for the electrical system to see if there is an issue. And I would, at a minimum, clean/inspect and grease the heck out of that connector if not replace it.