@BobbyFunn ,
I've never personally seen a problem with a sail like the problem in the picture you posted. But I've sold quite a few headsails sails with wire luffs and a few small boat furlers. (as well as personally owned two different boats with wire luff jibs) and in general, they all worked as advertised. Nobody had any problems of the type illustrated by your picture
I'm not at all sure what caused the problem with the sail in the picture but there's definitely a problem.
The wire is supposed to be 1 x 19 "counterlaid" wire cable, which is normally very resistant to becoming untwisted. Counterlaid cable has two layers; there's an inside layer of wire twisted one direction, surrounded by an outer layer twisted in the opposite direction. The outside layer on 1 x 19 wire forms a right hand spiral (looks like RH threads on a machine screw). The inner layer forms a LH spiral, When you twist the cable so one layer gets looser, the other layer gets tighter. The cable usually returns to the original amount of twist.
The picture suggests to me that the wire rope in the luff has "untwisted" near the tack. I rather doubt that the roll in the sail cloth at the tack what is keeping the sail in that shape. I suspect that the sailcloth is twisting because the wire is making it twist. The sail cloth is always lashed or "seized" to the thimbles at the head and at the tack. If the wire is twisted weirdly, the sail cloth will be twisted weirdly too.
I'd recommend you take a careful look at the wire yourself or take it to an experienced sailmaker. If the wire strands have become untwisted (aka unlaid) replace the wire. Then look for an explanation why it got damaged in the first place.
I would guess that some mishap befell your sail in the past, a mishap that caused the wire to distort from its originally tightly twisted pattern. Perhaps the top end of the wire was stuck while somebody pulled on furling line, unwrapping the lay of the wire near the bottom. Perhaps the angle of the furling line puts a massive load on the leech of the sail, so the head of the sail can't turn. Perhaps it got damaged when it was dragging on the road behind your boat( you mentioned that the "luggage tag" (aka seizing) between the tack of the sail and the tack thimble was destroyed).
Without seeing the furler in action, and inspecting the wire and the construction of the sail, I wouldn't want to do more than guess at the underlying cause of the problem.