willysmjeeps.com

So what is this thing and what does it do? Had a terrible
moment before I realized it wasn't the clutch cable.

In the same area. Appears to come out of or near the bell
housing, with a ball shaped termination on the other end
that currently is not attached to anything.

most likely, without a picture, you are looking at the engine stay cable, there are a few threads about it. basically though it attaches to the engine and the crossmember so that if you stop suddenly the rubber engine mounts do not let your fan eat your radiator.

Stay cable, yes that it is.

Wow. A lot of responsibility riding on that little guy.

Thanks!
Brian