air filter housing has a wide gap that can't hold the connection to the hole inside of the fender.

As long as all inle alectronics are between the break an the intake, that is olay.
In the lomg run it will damage the motor from sucking up dirt, engine bay fumes and contaminates, and water.
You can go the an auto parts store and bolt a K&N cone filter on the end.
The thing that I am wondering about is since the gap is so larege, was something lost? Either a connection collar. Hopefully it was not a sensor.

The connection from the housing to the main connection of the hose before the electronics. Basically had no filter attacment at all.

That can damage sensors.
You might try a salvage yard. Or, get an aftermarket perfomace type. They give a few HPs but they also come with lifetime air filters and attachment adaptors for inline elctrocs/sensors.
Try Summit Racing. i am sure it will be cheaper than going to a dealerip.

what problems can arise from damaged sensors?

what kind of of problems can arise from damaged sensors

They can be clogged most sampling type sensors,(Manifold absolute pressure, (MAP) has a tiny hole that could reek havoc when it is clogged.
Air tempertuare sensor can get damaged as well not to mention internal engine conatmaination.

IS THIS SORTA THE SET-UP YOU HAVE?

AT THE TOP LEFT OF THIS DIAGRAM IS THERE A HOSE (NOT SHOWN, IN DIAGRAM) THAT GOES TO THE FENDER FOR FRESH AIR?

THE MEDIC