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Hi, I just did my iPhone 6S glass repair today, after removing the cracked glass with a molybdenum wire (everything went smoothly), just before I was about to start wiping off the adhesive (attached image blue circle), I realised there is this layer (attached image red circle) that seems to have been cut by the wire when I was doing the glass removal. I did not continue on to do my new glass application as I was afraid that the layer that was cut may be important and may cause the whole screen to not work anymore. Can anyone please advice what is it and whether or not I need to get a new replacement of that film, really appreciate all the help! https://ibb.co/kCgFNb

The damaged layer is the polariser; it can be replaced but you need machinery to remove and apply this (same as applying the OCA layer). Companies who refurbish these usually remove and reapply this layer all the time, since it can get scratched or cut into (like in your case).