The electrical unit you've circled in red seems to be the original indicator/flasher unit, it's not a stop light jam switch.
The flasher unit that is connected up to the 3 wires is possibly? an aftermarket unit and is fitted side on into the mounting bracket possibly because it didn't fit correctly (the bracket in designed for the flasher unit to fit in positioned end-on).
I'd assume the original flasher unit failed and was replaced with an aftermarket one. I don't know why the original was left there.
(some original Fiat flasher units alternatively had a built-in angle bracket that fitted on a threaded stud using a nut to secure it)
The 'stop light jam switch' you've arrowed in red on the wiring diagram is just the standard stop light switch - the blue/black wires is the live feed when the ignition is on and the red wire goes to the stop lights.
Helpful hint:- just because 2 electrical units are shown beside each other on the wiring diagram doesn't always mean they are situated beside each on the car, they can be very much apart in some cases.