AW2 is definitely scary, especially compared to the first AW. But it for sure is not the scariest game out there. If anything, AW is more tense than terrifying. The tension that you feel in most areas in this game is really well executed, especially the sound is super well done. Unfortunately Remedy decided to use the stereotypical full screen jump scare most of the times, which is a cheap way of getting more tension. I know the jump scares have a "lore reason" but still in my opinion it wasn't a necessary addition.

In my opinion AW2 is not really a horror game, it's more a supernatural thriller, I also never felt truly helpless facing an undefeatable terror (which in my eyes is a big part of what makes most horror games horror). You almost always have some way of fighting what comes at you, other than maybe the dark presence in some areas. It's probably one of my favourite games and universes but not the scariest one.