water leak and awning question

First, why would you want to cut it? Unless of course you don't care for the lights. Why don't you try to reseal that area, but clean it real well first, even use a Q tip. When you zoom in on it, the screw above that area looks odd, like the aluminum is slightly buckled at that point. Is the screw tight? Water could be coming in that way as well. If it were mine, I would tie off the awning over the top if you are alone, and remove it from the camper clean that whole length add a new gasket between the angle and the camper and re-install.

Just cutting the wire showing may or may not fix the problem.

As far as the other wires, some awnings come with a sensor, some with a remote mounted on the arm, and other various items.  It could be it was prewired for that purpose.

It could really help me and others, if we knew what you have?  Make and model.  Maybe even the type of camper it is attached to.