Broncorick, that "L" shaped terminal is an attachment bracket for an unused Douglas connector. There is likely no pin on the male half of the connector (the half attached to the "L" bracket), so it doesn't connect the circuit to ground.
You'll usually find one of these "L" bracket dead ends under the dash. The wire is #85, which is spliced into #27 (the feed for the instrument spider harness), is hot when the ignition switch is on, and is intended for a light socket in the M42 version of the M37.