Plot hole: When Jo is getting to walk down the aisle with Queen Clarisse, he hands Shades his top hat and then pops his ear piece right off, in a split second, and puts it in the top hat. In the previous scenes, Princess Mia has Lionel's ear piece stretched from the back of his neck, across his jaw and around his chin and then stretched to her ear but it hasn't popped out, while Queen Clarisse jerks Charlotte with her when she goes to listen to Princess Mia.
The Princess Diaries 2: Royal Engagement (2004)
1 plot hole
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.
Lilly Moscovitz: Does this popcorn taste like pears?
Mia Thermopolis: Mmm, Genovian specialty.
Trivia: When Julie Andrews says that she never slides, she adds that she "has done a lot of flying". That is referring to Mary Poppins, which she starred in as Mary Poppins.
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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.