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As total novices, we basically followed along with the original instructions when we did our install and everything worked out. Unfortunately that also means we can't shed any light on the actual purpose of that looped wire.
Sorry if this is a dumb suggestion, as again we are just learning, but could you snip it and check it with a multimeter? The OP did state in the original text that this wire 'powers things down the line...'
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2022 Rockwood Signature 8324SB
2019 F350, SRW, 6.2L, 4.30 gears
Sold: 2020 Keystone Cougar '1/2 ton' TT, 29RLKWE
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