@Deaky Hope you don't mind me continuing this discussion because I think there's something for everyone to learn from this...
Heaters are designed to generate heat and appropriate wires, cables and insulators are used for these. Most cables in a car (or house) are intended just to carry the required voltage and current for the connected equipment to operate. We fuse electrical circuits so that if excessive current is drawn the fuse blows before damage to the cabling occurs - at least that is the intention. There shouldn't be any significant heating in these wires even if a fault occurs.
To me it doesn't look like a solder joint failure - there seems to be too much burnt out wire in the photos for a single hot spot. Insulation on cables does not melt/burn until it's well over 100C. As I read it the lights were actually working at the time the smoke was seen so there doesn't appear to be a short between the two wires either.
I do wonder if there were some AC effects from the LEDs (from PWM drivers possibly) such that a higher than expected peak current was allowed that just wasn't sensed by the fuse. If this was the case then it could mean that we all should be re-thinking how cable (and fuse) sizes are selected.