I think you have it. I do remember carefully cutting braid also. That is likely your power plug. The fiber loop you mention, probably a rectangular plastic coupler that aligns two separate cables so the light circuit is completed. You would unclip both cables and insert into the CDC. You will see more of these in trunk under driver side hinge for the factory in adding sat radio and HD tuners...
2007 650i 0440/LCGE, 6MT, Sport, Nav, HUD, NiVi, L7, HD Radio (now from CIC), SiriusXM. Coding: lawyer screen (CIC), Halogen DRLs on with high beams (LMA), fan speed LED seen on "auto" (with an LCI-IHKA), turn signals in HUD (CIC), etc... Status: CIC retrofit complete. E90.SSD >E90-E60 merged CIC.trc >coded for Combox. To do: ICOM/WinKFP >CIC (63, 62, A0) >v41 >complete 6NR/6NF coding.