Well let me list magic wielding, cursed, or magial NPCs from various games and novels, forgive me if it isn't complete, I'm mostly going off the top of my head.
Well in KQ1, the only NPCs that use magic,(or are at least magical creatures) are Dahlia, the Sorcerer, the Leprechauns, the Fairy and the Elf(gives you a magic ring), gnome(straw into gold). All other NPCs either don't use magic, or you use magic to thwart/help them.
In KQ2 original version the magical NPCs are, Enchanter, Hagatha, Unicorn(gives you a magical sugar cube), maybe Dracula(his ability to turn into a bat is likely magical), good fairy, genie, presumably the Mermaids(they could allow graham to travel under water and still be able to breath), the magic talking gold-fish. Everyone else, was probably non-magical.
In KQ3, the only magic using NPCs are Medusa(ability to turn people to stone), Oracle, and Manannan, assuming the old gnome is the same one from KQ1(then its the same magical gnome). Everyone else seemed normal enough.
In KQ4, there is the fairies, 3 witches, and lolotte. In the intro id some dicussion of possibly magic prowess from the castle Physicians. Maybe ghosts, zombies, and mummy if you count those as magical in origin, rather than just paranormal, magic laying hen, frog prince(cursed by magic crown, though probably normal otherwise), Cupid(magic arrows), and unicorn(if you consider unicorns to be magical). Everyone else probably non-magical.
In KQ5, Gypsy Leader(wielded a magical staff, though probably normal otherwise), Old Hag, crispin, genie, Gnome(another straw into gold, possibly the same one from KQ1 according to the companion), Cedric(knew a bit of fairy magic), Madame Mushka, Queen Iceabella(had ability melt/freeze ice cage around cedric), Weeping Willow(cursed by magic, though not a magic user), Blue Beast(could make portals to the dungeon), Manannan(well he used to be able to use magic at least), and Mordack. Everyone else was probably not magical.
In Kq6, Genie, Abdul Alhazred(to what degree is unknown as it seemed he had his genie do most of his magic for him), Beast(cursed with magic, by a hag, and curse would spread to anyone else who came to the island), Lord of the Dead(ability to bring people back to life or take away life instantly), Oracle, and the Druids. People on Isle of the Crown seem to be normal enough (they mention there had only been one other wizard known on the island who poofed himself into an ardvark, Harun al Rashid), and refrence to Shadrack. Isle of wonder, well maybe magical creatures (one creation legend alleges they were created by a wizard), though possibly not able to use magic themselves. There are alot of magical elements on the Isle of the Beast but those are part of the Hag's curse.
KQ7(anyone from Etheria presumably since they are all fairies), Colin Farwalker (had some magical items, though unknown how much magic prowess he actually had), Queen Mab, the cat(able to give an extra life), Count tsepish, his wife Elspeth, King Otar, and Mathilde,. Almost everyone in Ooga Booga has been given undead life(probably from magical origin). The creatures of Falderal don't seem to show any magical prowess but may be from magical origin. The world of Eldritch is a magical world so practically everything there is likely created from magic, or can use magic.
MoE, the Wizard, Azriel, Sylph, Lady of the Lake, Unicorn, Swamp Wisps, King Mudge, Swamp Witch, Gnome Sage, Gnome Apothecary, Weirdling Shaman, Queen Freesa, the Archons, Lucretro, Henchmen(created through magic, have ability shape shift). Normal humans were turned into stone (except for a few that escaped the fate by getting into dimension of death), other races somehow were able to avoid that fate.
In the novel, Floating Castle, there is a witch, 3 wizards, one of the wizard's daughter, and a wizard's apprentice (his former master is even mentioned so that's 4 mentioned wizards altogether), and a fairy, castle physician(is mentioned to have some magical prowess). Everyone else is "normal".
In the novel Kingdom of Sorrow, there is the Fairies, Seer of Daventry, Efreeti Kuzgu, Gnomes(who have ability make magical clothing that "sticks" to the glass mountains, but nothing else for traction), the evil wizard Karn Megiddo. All the rest of the characters/creatures seem to have no prowess to use magic..
In See No Weevil, there is dicussion of gnomes have their own particular magic they can weave into whatever they make maybe not even knowing they do it. There is again discussion of at least knowledge of magical cures from the castle Physician. The fairies from the Old Wood show up again. Pied Piper has his own type of magic. Farquhar is a failed student at the magicians' academy and knows a limited number of spells. Dicussion of three "amous wizards from the past(Entomon Wilson, Sorcerer King, Ulan Vasx). All other characters are "normal".
Graham has some magical knowledge of iconomancy, Alexander has had quite a bit of experience using magic in his various adventures, Rosella has used some magical Devices and items. Derek Karlevagen claims to have dabbled in some magic himself.
Overall it seems that in relatively normal kingdom's, such as Daventry magic is usually more rare, so people are more impressed by it. In magical kingdoms like Eldritch encounters with magic is more common, so no one is suprised by it.