Is this lighting normal?

Is the lighting on this wall normal? Why does it have spots all over the wall from the lighting?

This is due to Ambient Occlusion. Changing Ambient Occlusion settings in a Post Processing Volume should do the trick. Remember to set the Post Processing Volume to ‘Infinite Extent (Unbound)’ if you want it to apply to the whole level.
Screenshot 2024-04-16 090852

You can also learn more about how Ambient Occlusion works here: Material Ambient Occlusion (AO) in Unreal Engine 5 | Epic Developer Community (epicgames.com)

Looks more like lumen, which can have quality issues in interior spaces without much lighting, unfortunately the solutions are, use more light actors, crank up the quality settings, and make sure the lumen scene debug view looks good.