Is this acceptable?

[Oilfan97]

Does this need to be sealed up?

 

[JRTJH]

Yep, and from the looks of the water on the plug, you might want to get it dry inside before you do seal it up. Otherwise, if there's any of those drops inside the plug, it'll corrode from the inside out rather than from the outside in....

 

[Martian-KEY]

Your best bet is to disassemble the connector and shorten up the wires so the outer jacket stays in the ferrule. Not hard but attention to detail is important. Somewhere on or near the business end is a screw that holds it together. Push the cable in from the back and everything will slide out once the retaining screw is out. Much better than having a big glob of sealant.

 

[flybouy]

Sealing it up is just one issue The other issue is that the strain relief, the white ring the wire goes thru, is not engaged. So, ANY force pulling on that cable, including the weight of the cable itself, will directly pull on the wire at the screws inside.

Take it apart as described above, shorten the wires by cutting and stripping the insulation back so that when the wires are screwed in they should be straight and the outer sheath if insulation goes all the Tru that white strain relief . Take your time, it can be a bit fidgety working the wires into the screw terminals but it must be dome that way. When you first open the plug take some pictures to help in reassembling.
Replacing the cable with a molded plug on the end is another alternative.