What does this connector do?
 

From pg14 of the 8cyl TDI service manual

https://i.imgur.com/3elPsJN.jpg

It's attached to the slam panel just inboard of the drivers side headlight, it's shown in the manual but no mention of what it does.

Unfortunately on mine someone has bodged the wiring for this connector, I'd like to know what it does before I attempt to put it right?

Is it connected to the latch so it knows when the bonnet os open?[

I think you're on to something there, Google images of the latch show wiring that looks very similar. If so, it makes this bodge all the more annoying as there were far easier and cleaner ways of overriding the switch than the utter horlicks they've put in place.