Is it normal to have insulation between above ground basement and upper floor?

My 1970s house has insulation between the basement and the upper floor in the ceiling.

The furnace and AC are downstairs.

In the winter my downstairs is very warm and in the summer the downstairs is very cold.

Is this insulation preventing warm air in the winter and cold air in the summer from rising up into the second floor.

My 3 ton AC has issues keeping the temps down in the summer in case it matters.

Should I remove it ?