As above it’s a 20micro farrad capacitor. It mounts to the coil bracket.

it stops electrical noise mainly on the crank and cam sensors.
Some fords did away with this and used a twisted pair of conductors to block noise ( black top Zetec ). Others used a metal shielding cable. The st220 has a wire braid over the sensor wires then tin foil wrapped around that.

if it’s not earthed ie not bolted to the engine then it’s doing nothing any way. I can see the the insulation is damaged that is a fire hazard. If it’s touching anything and earthing out it will cause all sorts of problems.