Why are there two Applications folders on my Mac?

Yes, that’s normal. Most native macOS apps, along with macOS itself, are installed on a sealed, read-only volume that can only be modified by macOS itself. User-installed apps cannot be written there, and are installed in a different Applications folder (and 3rd party apps installed only for one user are stored separately from those installed for all users).

When you use the macOS shortcuts for the Applications folder (Command-A, the Applications item in the Finder sidebar, etc.), macOS shows you just one ‘harmonized’ view for convenience (that view does not reflect where the apps are actually stored, though you can find that if you look…as you evidently have!).

Short version, you don’t have to worry about this.

More info from Apple: View and open apps on Mac - Apple Support

Since about Big Sur, the System has been separated from your Data and things you install independent of the OS.

Everything in /System is the default os install. It is mounted read only from a sealed snapshot. It cannot be modified.

Everything you install is installed on the Data volume. Applications you install show up in the Applications folder stored in the Data volume. The OS merges the two parts to make them look like one.

Glad to help. It’s the same basic answer as when users ask, “I don’t play Chess, why can’t I delete the Chess app from my Mac?” It’s on that sealed, read only volume, inaccessible to the user.

Thanks neuroanatomist!

Case closed....