Apparently it is not normal to see both, but as long as you have a System32 folder in C:\Windows, everything should be ok. Here is some similar discussion about it.
System32 Folder
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Anonymous
I have Windows 10 Home Edition OS. Is it normal for me to have two system32 folders, one named System32 and the other system32? It appears one is the duplicate of the other as the files inside appear to be the same.
Windows for home | Windows 10 | Files, folders, and storage
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Anonymous
2017-11-23T17:47:27+00:00