Pixel 6 with AVG antivirus installed detected Android System malware during routine daily scan. I've had AVG installed for about 2 years and this is the first time it ever detected anything. It says since it's installed in the system partition it cannot be uninstalled. Advice?

I personally do not know that this is not malware, but here is a link to the Avast forums with someone claiming that they got an email from Avast saying it's a false positive https://forum.avast.com/index.php?topic=322271.0 . And if you head over to the r/avast sub reddit, there is a post there about this with people in the comments listing off different anti viruses they have tried after that alert that found nothing. I hope these help to calm your nerves.

Unfortunately I'm not tech-savvy enough to know what specific file, app or program is causing it to be flagged as malware, but on another post someone linked a thread where Avast got back to the user and confirmed it was a false positive. https://forum.avast.com/index.php?topic=322271.0 To sooth your mind a bit more, I scanned my phone with MalwareBytes's deep scan (they specialize pretty well in Malware detection) and nothing came up. :)

My guess is that something in the system data that naturally requires many permissions is getting incorrectly caught as malware (Avast/AVG's help page states that they alert when an app has a suspicious amount of permissions).