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The phrase "acknowledged that the system" is correct and usable in written English.
It can be used when discussing recognition or acceptance of a particular system's existence, functionality, or issues.
Example: "The committee acknowledged that the system was outdated and needed an upgrade."
Alternatives: "recognized that the system" or "admitted that the system".
Exact(31)
"They also demonstrate the need for NIH to issue the final ethics rule as soon as possible". NIH spokesman John Burklow acknowledged that the system of oversight for conflicts of interest had grown in need of a "systemic overhaul". But that situation, he suggested, is largely behind the agency.
He and others acknowledged that the system is hardly perfect.
Boeing later acknowledged that the system had malfunctioned and apologized.
The executive director of GrowNYC, Marcel Van Ooyen, acknowledged that the system was complex.
She acknowledged that the system had one advantage: overcoming the ancient problem of bad handwriting.
Tepco acknowledged that the system could falter again and might have to be shut down for repairs.
Similar(29)
Even airline analysts acknowledge that the system is flawed.
Kobayashi acknowledges that the system has its limitations.
Today, authorities acknowledge that the system and its regulations have produced powerful disincentives to private investment.
It is time for people to acknowledge that the system is broken in multiple, damaging ways.
They acknowledge that the system of school accountability isn't fit for purpose.
More suggestions(17)
acknowledged that the procedure
acknowledged that the computer
acknowledged that the command
declared that the system
acknowledged that the device
acknowledged that the health
acknowledged that the governance
acknowledged that the sector
acknowledged that the scheme
acknowledged that the cost
acknowledged that the regulation
recognised that the system
recognized that the system
established that the system
acknowledged that the mechanisms
recognize that the system
accepted that the system
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com