Is it possible to make the artificial gravity for space station to work by using the Permanent Magnet (PM) technology to float/rotate and balance out the inner floor/living quarters to counter-rotate the outer rotating station when creating gravity? Thank you so much.
For artificial gravity to work well, you need a really large station: if the station is too small, there are side effects that would make the experience very unpleasant. You need a diameter of 100-200 m.
Current thinking is to achieve this by having two habitable modules with a truss or cable between them, and spinning the entire station. The simplest way to rotate these is using rocket thrusters.
Rotating the living quarters inside an outer shell is inefficient: you've doubled the weight of the station for very little benefit. If you do go this route, magnetic bearings are feasible. But they're only a tiny part of the problems you have to solve to get to an artificial gravity system.