Other mistake: The engagement ring that Mia gets at the beginning is larger than the one she gives back to him at the wedding.
The Princess Diaries 2: Royal Engagement (2004)
1 other mistake - chronological order
Directed by: Garry Marshall
Starring: Anne Hathaway, Julie Andrews, John Rhys-Davies, Hector Elizondo, Callum Blue
Continuity mistake: When Mia takes the chicken out of the basket and it gets loose, we see the chicken run away, followed by Mia running after the chicken, and finally the palace guard falling amid a number of boxed, gift-wrapped presents. The only boxed presents that were visible in any of the previous shots were already on the floor, and there were none anywhere close to the palace guard that he could have knocked down as he fell.
Mia Thermopolis: Oh my God, you're here.
Lilly Moscovitz: I know.
Mia Thermopolis: In Genovia.
Lilly Moscovitz: I know.
Mia Thermopolis: You're in my closet.
Lilly Moscovitz: Yeah.
Mia Thermopolis: You're blonde.
Lilly Moscovitz: I'm blonde.
Trivia: In the scene where Mia sees all of the past royals in her family the paintings on the walls, they are of writers and producers.
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Answer: My guess is because Mia and Michael didn't actually start dating until the third Princess Diaries book. The second and third books were all about Mia trying to get Michael to go out with her, and since they went out at the end of the first movie, they couldn't base the second movie on the second book.