9mm??
So the melted fuse makes lots more sense now that you explain its terminals become loose. Google "loose connection resistance" and there's a cornucopia of technical jargon and engineering terms to support your problem. The circut in question is a high-draw circut, so with the increased resistance of the loose terminal you get your melting culprit...your pick trick is just delaying the inevitable.
Knowing now with the additional info, my instinct would be along the lines of replacing the fuse block...guys like
@cucvrus would be better to elaborate on that topic than me. You could also dive into the TM to see what that process entails. Replacing the individual fuse block terminals may be an option too. If that's totally impossible, surgical excision of the line/load wires for the headlight circut for a properly sized inline fuse holder could be a pinch solution, tho not what I would consider ideal...tagging with some sort of label maker should be done for future use.
As for the horn: I'm feeling the horn wire is disconnected/cut because the horn button in the wheel is missing. IIRC there's a hot wire in the column that triggers the horn relay when it is grounded to the column. No horn button means loose hot wire and constant-on horn. The horn cap for the steering wheel is readily available across the web for $50-ish...you'll prob need the horn cap retainer kit too. Reinstall horn power wire and fuse, should be solid...it's a simple circut.
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