You can create a system reserved partition on disk 2 if you want to, but it won't change anything. Your E: drive partition is already marked as active. Your computer is booting in legacy BIOS (or CSM) mode. Computers booting in legacy BIOS (or CSM) mode do not require a separate System partition the way that some computers booting in EFI mode do.
If I were you, I would use the bcdboot command to make both the System Reserved partition on disk 0 and the E: drive partition on disk 2 dual bootable so that either partition will boot either OS. Then you would typically boot from disk 0, and pick whichever OS you wanted to boot from. If disk 0 failed, you could fall back and boot from disk 2 as a backup.
You can do the same thing by creating a system reserved partition on disk 2, but it is not going to help the F8 problem that you are describing.