How can we be 13.2 billion light years from another galaxy?
The distance you are referring to is the "light travel distance". It is the length of time that light has been travelling from the distant galaxy to us.

When the light was emitted, our Galaxy was much closer to that distant galaxy. What has happened in the meantime is that the space between the galaxies has expanded.

Furthermore we can ask where is that galaxy right now (where now is a time measure since the big bang) and it turns out that the galaxy would be much further away than 13.2 billion light years - more like 40 billion light years if you were to somehow measure that distance with a very long ruler.