Never heard that one. It sounds similar in scientific rigour to the stupid green highlighter pens that in the 90s people used to argue you could colour the edges of your CDs with and you’d get better quality sound on playback
. It was rubbish science easily disproved.
If a charging cable got that hot (and you’d be worried if they did) then wrapping a wet towel around it would provide only minimal and temporary cooling, because if the cable is that hot, the wet towel would quickly heat up and its presence wrapped around the cable would make heat dissipation even worse. Do not try this.