Is this normal? or did i get a bad LAWN MOWER?

normal. don't mow if grass is wet. raise the deck.if grass is wet, it will not be thrown into the bag. my toro, which is self propelled and just about the same cost does the same thing. also, if your mower is a mulching mower like mine, it will hold the grass in so it can cut it in smaller pieces. of course if it's wet, it ain't gonna fall out. with a mulcher you have to mow more often so the grass is not too long as it will leave clumps.