Are pedal overlap bikes normal?
The fork is fitted the wrong way around. The brake caliper should be in front of the fork, not behind it. The way it is, the bike will be very, very hard to ride because of the negative rake, making it very nervous. The negative rake is also the reason for the pedal overlap. Normally, you should at most get some toe overlap.

Loosen the bolt in the top of the stem, turn the fork around 180 degrees (it will only go clockwise because of the brake cable to the front brake) and tighten the bolt when the stem and wheel are aligned.



Thanks to @MichaelT, here's a picture of how the fork is supposed to look like: