Is my MacBook battery health normal?

Nothing to be concerned about. 96% is well healthy.

Charge cycles is only a part of battery aging. Other factors include age, patterns of use and environmental factors like heat and cold.

The best advice for getting the best from your battery:

• Plug in when using the computer near available power.

• Use on battery when ac is unavailable.

• Don't subject the computer and battery to extreme temperatures.

• Let the OS and charging circuits manage the charging.

• Try not to allow the battery to discharge deeply regularly before plugging in. Yes, it will happen from time to time, just don't make it a habit.

• Don't obsess over battery life and/or health.

If you continue to get respectable usage time on battery then all is good. Apple considers a health of 80% to be the replacement threshold. All batteries will die. Some faster than others. The battery health drop rate may not be linear, and may even increase slightly from time to time.

Here is Apple's guidance on the subject.

Batteries - Maximizing Performance - Apple

Please take @ D.I. Johnson's advice here:

Don't obsess over battery life and/or health.

Ignore the battery health & condition until you experience a problem with how the battery performs while using the laptop normally. If you find the battery is not performing adequately, then check the Battery Condition to see if it says "Service Recommended", or if the "Maximum Capacity" is less than 77%, or the Battery "Charge Cycles" is near or over 1,000 cycles. You can also run the Apple Diagnostics at that time to see if any hardware issues are detected. Otherwise ignore the battery information.

Until Apple revealed the "Maximum Capacity" value to the user several years ago, the user never knew how the Apple batteries actually behaved before Apple exposed this value. Apple Lithium Batteries have their Maximum Capacity fluctuate up & down all the time and it is completely normal. A fluctuation of 5% is completely normal (even 7% is within in normal range). Plus new batteries may need time to stabilize their internal chemistry as well which is why there are these fluctuations.