I think it's flakiing as well and is normal. It's hard to tell from the pic but it looks like you might have a Quaker parakeet (we used to have one named "Cheeks").
Birds are so fickle with their behavior and have such individual personalities that it's hard to say what's "normal" for each one.
Our orange wing amazon Rex, was pretty much neglected by his previous owners before we bought him at 3 yrs. of age. His cage was tucked in a corner in a dining room that was basically an alcove off of a long hallway, in no way near his "people" most of the time.
As a result he wasn't socialized very well (and hasn't become much more in 16 yrs. with us). Someone had started to teach him to say hello and I was able to get him to speak the full word, but he was to old for much vocabulary building and has never learned more. He does a mean wolf whisle though and mimicks my laugh dead on.
He (she/it, we've never had him sexed, just seems like a boy) actually prefers his cage. We take him out and in short order he goes home again. I don't think the "going round in circles" is because it's stir crazy. Rex climbs round his cage when he's feelin' frisky. Then he usually goes and "kills" his bell.
I think they use their beaks as a sort of "third hand" to climb.
Good luck with your new feathered kid and don't worry to much. The longer it's with you, the more you'll know what's "normal" for him/her.
I found the magazine "Bird Talk" invaluable for learning about Rex when we first got him, you might want to subscribe. Then again we didn't have the net back then.
Ali