Your description right down to the location under the frame says it's a circuit breaker. This breaker is for your interior wiring, but not the brake wiring. If your lights and electrical items in the trailer work you can put off replacing that breaker.
Your brake wires should go straight to the brakes. Go thicker on the wire like at least 10 gauge. Best is to put a waterproof junction box on the tongue or under the front of the trailer. Take the one brake wire from your 7 pin to the junction box and then run 4 separate brake wires from the box to each wheel. Do not run the wire from the 7 pin to the first wheel and then jump from the first wheel to the second and so on. That it a surefire way to get poor braking performance.
It's usually cheaper or at least easier to buy complete brake assemblies from someone like etrailer. These are complete units (brakes and backing plates and magnet) You just cut the old wire, remove 4 bolts and pull the whole brake assembly off. Put the new assembly on, tighten the 4 bolts and hook up the brake wire. Figure $200 per axle to replace. maybe it was 100 per axle I it's been a while since I looked.
As far as the circuit breaker. You should have one wire going from the breaker to the breakaway box. From the breakaway box you should have a wire going to the waterproof junction box you added for your brake wiring. This wire gets tied in with all the other wires. Yes 6 wires all joined together inside that junction box.
The other wire from the breaker is to the wires that feed the electricity into the coach.