I was recently trying Microsoft's Arrow launcher and it was then I saw that the default launcher on my phone is called 'Launcher3'. Its icon resembles 16-bit icon.
From what I read, it is the name of default Google launcher. Is it?
Does my phone why virus or this is the default launcher from Google? I am using Moto G5 Plus.
Launcher3 is the default launcher in AOSP Android, and is the base behind many customized launchers - even Google's own Now Launcher (obsolete) and Pixel Launcher. Some manufacturers would leave the default name and icon in, but customize its appearance and behaviour nonetheless.
If still unsure, verify the package ID using one of the methods listed in this question.
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