It cycles the liquid just fine; it's getting rid of 100% of the bubbles that urinating sometimes creates (typically when it's concentrated, e.g., in the morning) that it has trouble with.
It is normal behavior. The low-flow toilets seem to have been built assuming all waste is sitting at the bottom, but toilet paper can be held floating at the top due to surface tension. The first flush breaks that, then the second flush gets rid of it.
Seriously, that is not normal behavior for a new toilet.