Why my vmware shows two partition for same disk space?

You have a 33GB disk. There are two partitions and about 1GB of unallocated space. The largest partition is a logical partition inside an extended partition. You have MBR partitioning. I explained what this is here What is extended file system and how to merge it?

The small FAT partition will be critical to the boot process. If you were to change it to a Linux filesystem it would not boot.