I can see heavy condensation (water) inside the driver's side headlight assembly. Any advise on how to deal with this problem would be appreciated. Thanks.

I had this happen on an Audi I owned years back. I removed the bulb, then used a hair dryer to blow heat in the hole where the bulb resides. Once I got it good and dry, I used aquarium sealer/glue to seal any surface that looked like it could allow moisture to get inside the headlight unit. Also, check for, and glue any rock chip on the face of the headlight, that may have put a pin hole in the facing, allowing moisture to enter the headlight.

 

Gluing/sealing should fix your problem.