Two things about Bully.
1) It will never happen nowadays, at least not under that name.
2) It will never happen except as a period piece.
The thing is, ever since Columbine, "bully" doesn't bring to mind wacky firecracker and water balloon fights, it brings to mind AR-15s slaughtering roasties and Chads. No, wouldn't work in the modern day. So if you're going to make a Bully 2, it needs to be a throwback, something to play on nostalgia for times past. (The original did this by excluding certain modern trends and technologies. Also, I never played Bully, so feel free to ignore everything I say because I don't know what hte fuck I'm talking about.)
Personally I think there's a ton of potential in a Bully sequel. There's two directions I see for it. One I see is play the high school angle, but with this gimmick: big focus on classes and extracurriculars, and one male and one female playable character to swap between. Setting? Probably 80s or 90s, that's about as recent as you can get before clown world starts taking over and seems like a stock setting for any high school movie that's not nostalgia bait (like Grease is for the Fifties). And I'd build it out of minigames. See, in the original Bully you had to do classes, right, but some of them had dumbass things like Chemistry being a rhythm game (???). I say go all in, Chemistry is like Kingdom Come alchemy, Biology is dissecting pigs and frogs like Surgeon Simulator, English and History has side missions for reports (like go to the town's old battlefield and encounter a ghost, or writing reports based around what you think will please the teacher as satire, you know). And then for extracurriculars you can have Guitar Hero like minigames for garage bands or if your character is a faggot then marching band. Have a little baby Madden/NBA 2K whatever for sportsball. Have QWOP for track and field. Like, build all the classic clubs into the game as parodies of the games that already depict them.
On the other hand, Bully could scale it up to a college setting by aping those old school fratboy movies like Animal House and Revenge of the Nerds. Imagine a freeform RPG where you end up in a shitty frat on probation and you have to turn it around and make your frat number one and win the big games (whatever the fuck they call those dorm games). Could even have thing where you choose who gets in and who you reject joins up with other frats and becomes enemies. I WANT TO PANTY RAID
Lot of potential in a Bully sequel, but only if it plays it close to classic movies in terms of inspiration. Because bullies nowadays take their virgin rage out on people with hot lead.