In short: The Windows API contains all the functions specifically defined for Windows. The C runtime library contains all the functions that are required by standard C.
Physical libraries implementing these functions can be a single file (library), divided into two separate libraries or divided into many libraries, depending on the operating system and the actual API / service that you use.
For example, when creating files, the C standard includes a function:
fopen
for opening and creating files, etc., while the Win32 API (for example) defines functions such as:
CreateFile
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