[Blas]

Ah...the plot thickens......
Yes, 16 is "WAY" to high... you definately have a charging issue, perhaps just the regulator but maybe the alternator too.
High 13's is normal, maybe even 14.0 .... (I like to see 13.45)
I would start there... VR first then do voltage tests again....
You could toast the harness's and battery with your current voltage readings.

Regarding the burnt wire....
Bad, Bad, Bad.....
Can you send a photo of it to me.
Also the wiring on the alternator... send a photo
Can you determine where the damaged red wire ends go? I assume the one end you fixed is just isolated and tucked away now. but where does it originate from in the harness?
Do you have an accessory plug (lighter) installed on the car? It was an option in the early days...
It should be located between the 2 up-right supports on the tunnel close to the one on the passengers side....
Is that the area where the 2 tosted wires were/are?
Bloated battery is serious overcharging or total discharge and then freezing and expanding the case....
My email address in below.
ADD PHOTO OF BACK SIDE OF AMP METER IF POSSIBLE SHOWING WIRING

More thoughts:
I recall someone hooking up the alternator incorrectly with problems similar to this.... I think it was the ground wire...

OK... Went thru a couple hundred emails...
Similar problem solved when:
1.) Crimps on 2 AMP meter connectors were found to look ok with black isolation sleeves on them but loose when removed and recrimped.
2.) Alternator miswired - ground & stator wires switched.

Still Thinking