I haven't played BD.
1) The Paladin was ruined. He is practically not mentioned in this game. He released Damian from Nemesis and messed up when he tried to fix his mistake.
2) The Divine One was ruined. Not only did they give him a default gender and appearance, but they also made it so that the Divine One was a complete idiot.
3) They ruined Damian. In BD, even though he was a pure villain, he was quite charismatic and had a good sense of humor. In this game, he is a generic evil overlord. And he looks stupid.
4) They retconned the story a lot. There was no sorceress seductress; there was just a child who started acting like a villain from a certain age. The Divine One didn't want to kill him, but he also didn't want to put the world in danger, so he entrusted his son to the Raans, a race from another dimension, hoping that they would teach him right from wrong. This didn't work, and Damian conquered Nemesis with his demonic hordes. But he was locked there, as only the Divine One or one of the Paladins could free him, so Asmodeus (the main antagonist of the original game), being an incredibly cunning person, devised a plan to free him. In Divinity 2, Damian has a completely different story, and Asmodeus is not even mentioned.
5) They ruined several other minor characters, like the Patriarch.
6) The game is becoming less of a parody of typical fantasy RPGs and more of one itself.
7) The manipulation moment is stupid and unoriginal compared to the previous part.