No, this is not the way bikes are typically sold or ridden. Usually either both 700 wheels and tires or both 650s. I am guessing this CA2 started out as a 700 model. Then someone replaced the front fork to be able to fit a 650 tire and have the front brake be able to reach the rim. This may have been done to lower the height of the pedals from the ground, or just make the bike easier to mount. I can see how this modification could potentially affect handling, but I am not the bike geometry expert.