AVG android system malware

Hello Paul.
Thank you for contacting AVG Community Support.
We apologize for the inconvenience caused.
The issue is resolved and the detection is disabled now.
We request you update the program or restart the device. That should stop the threat detection notification.
We appreciate your cooperation in resolving the issue.
Thank you.

Hi there,

My AVG scan has started flagging Android System app as malware and I'm unable to remove it ( safe mode doesn't work).  Appears others may be having a similar issue. 
Concern is that I now see two Android system apps. 

Do I need to reset my phone?

Any help is appreciated.

Hello Paul.
Thank you for contacting AVG Community Support.
We apologize for the inconvenience caused.
The issue is resolved and the detection is disabled now.
We request you update the program or restart the device. That should stop the threat detection notification.
We appreciate your cooperation in resolving the issue.
Thank you.