My embrace dressing has air bubbles and wrinkles. Is that normal?

Yes, the dressing is occlusive, which means the dressing is closed over the skin. Your skin is still breathing underneath the dressing and this is how air pockets occur. Wrinkles are the dressing conforming to your skin and occur due to the nature of wearing a dressing on your skin for 7-10 days. As long as the edges of the dressing are still fully adhered, embrace^® is still doing its job and offloading the tension.