This review is for the full version of the game, which can be purchased from https://enkiangames.itch.io/azuraels-circle-chapter-2 if you're steam-averse like myself.
This game is much like the first chapter in the series. It's solidly put together, with a progression that makes sense and is easy to follow. Unlike the first chapter, it's immediately obvious there is something very wrong in the building; it's not so much a matter of suspense building as finding out exactly what's going on and how bad things have gotten. The puzzles are not at all difficult and in fact feel somewhat easier than the first installment; I was more reminded of a Resident Evil game than the Chzo series. The story, on the whole, unfolds as one would expect and has few surprises; however, there is one interesting new element added to the arc in the form of the shadow children. It's not a bad game, and I believe it to be worth the asking price.
I can't help but compare it to the first game, however, and I can't help but feel it somewhat less imaginative and well-constructed. The overall structure of the game seems to be completely the same (enter the building, find keys to explore, read journals to find out what's happening). While the building in this game is bigger, it didn't really feel so due to the cookie-cutter layout. This is to be expected in an apartment building, but the cookie-cutter scenery descriptions were somewhat more disappointing compared to the attention and care lavished on every item in the first title. The hauntings (again, I won't call them jump scares) seemed somehow less eerie and frightening than in the original, though the shadow children more than made up for this when they appeared; everything to do with them is unsettling, and leaves interesting questions to be resolved in future installments.
I was slightly disappointed by the secrets; they're exactly the same as in the first game, with nearly identical hidden items, a hidden ending that's accessed the same way and has the same variation, and a hidden room with essentially the same condition to enter, with the only difference being how that entrance is accomplished. It does make more sense where the entrance is, this time; and I found the hidden ending itself to be more interesting, if darker in tone.
(I should point out that neither the hidden room nor the hidden ending can be found in the demo, though some of the hidden items can.)
On the whole, it was a good game and I'm glad I played it. However, I thought the first one was better.