I’ve owned some budget micro red dots in the past and recently upgraded to T2s. If I run the brightness above 9, there is a bright ring around the sight picture that’s pretty distracting.  Didn’t have this with the budget optics no matter how high I turned them up. Tried to get a pic as best I could.

Is this normal?

all of my aimpoints do this at brighter settings.  turn the brightness down indoors.  outside in sunlight you'll not notice it.

Yep, normal.  You should run the brightness where there is little to no ring but still visible when shining a white light on a target.  For me, and micros, that's usually at setting 9.  I need 10 in the bright sun outside.  When darker, 8 works okay; a little bright with no light and dim when a light is on