It looks like the insulator is still good and therefore the center electrode, so no issue delivering the juice (these harnesses use metal center conductors that are pretty robust). The issue is the shielding. When the goal is to contain interference, you want both ends of the shield grounded. It looks like your getting only limited ground contact there and, in theory, throwing off more RF. If you are not noticing any noise or humming in your radio or intercom, it may not be an issue.
Larry