Is the acting supposed to be intentially bad?

yes...on the other hand most people in real life act like erratic robots, so this acting might be more accurate

It's more like a play. They reciting for the audience and less interacting with each other for their own sake, in fact character interaction is even directed at the audience as a show. The viewer is "sitting in front" of the scene, never immersed in it.

When you get into it and over the same old movie focus points you are so used to concentrating on, you'll notice that it's actually nicely directed and edited and the performance of the actors are not really supposed to be "firing" the scenes, but it's the staging of the scenes done by the director instead. Then it's pretty obviously intentional so, they've probably been told to act like that or have been chosen because they act like that in the first place.