Is this an example of shoddy contracting and/or building code violations for a house built in Tennessee twenty years ago? exterior facing wall light switch, no fire caulk on edges/holes, w/ cold draft coming through...
Weirdest part of all though... when I put my eye close I can see a light shining through the red plastic cutouts! (Really curious why is there light inside my wall, although that is not my primary concern.)
As for what I've done so far: I read various articles about how to fix this and a lot said just to use a foam gasket. But one site said that won't prevent airflow through the center and you need to open it up and seal all the edges and wire holes with fire caulk.

Update: I applied fire caulking all around the top bottom left and right edges then used standard foam gasket cutouts. Well, the cold air is no longer leaking from the edges but now there is cold air flowing through the center holes but at least the airflow seems to be less now.