I went for a glass replacement and a cable was snapped

Hey there!
As for 2nd screen, the part you marked on red is just part of isolation sticker, it doesnt really affect the performence if its ripped of, as long as the flex cable stays intact.

About the 2nd problem: Apple watch SE is not equipped with touch sensor, the orange thing you reffer to is just a seal that lifts display a little bit and strengthens waterproof abilitys. Most likely you cannot close it as there are remains of adhisive left on the seal/display, try to gently cleaning it off end then check if its fits perfectly. To permanently seal it try glue b-7000.

Oh and lastly, if the seal is ripped/damaged, you can consider getting rid of it complitly or replacing it, glue should seal watch properly if applyed correctly.