Is a butane torch supposed to have Styrofoam in it?

The styrofoam should come out. I believe it's just packing material. You don't need styrofoam to use that torch and I have yet to see a torch with it, in the design structure. Not to mention, the fuel will probably dissolve it.

doesn't sound right but can't help you without photos or at least model info.

Styrofoam and fire don't play well together. Not sure what you mean by "in it", post a picture