Metallic Sector Team: Hyper Metal Mike, M.I.K.A.-Z3, Miss Nekotron 64k, Claire TimeDragon, Melina Retron, Iron Man (Marvel), Mazinger Z (Shin Mazinger Z), Hatsune Miku (Vocaloid), Megaman (Megaman Classic), Jin Saotome (Cyberbots) Violet Sector team: Queen Geass, Demon Empress, Puppetia De Marionette, Thunder Clap, Cia (Legend of Zelda - Hyrule Warriors), Zygarde - Complete Form (Pokemon: Sun & Moon), Lelouch Lamperouge/Lelouch Vi Britannia (Code Geass), Dr.Doom (Marvel Comics), Sinestro (DC Comics), Morrigan (Darkstalkers) Crimson Sector Team: Micheal Fexin, Nightmare Fuel, Yokoro Onikia, Shivia Solararms, Genesic Gaogaigar (Gaogaigar: FINAL), Wolverine (X-men), Asura (Asura's Wrath), Hulk (Marvel), Chara (Storyshift!Undertale), Sunset Shimmer (MLP:EG) Black Sector Team: Viralius Deathbird, Viralina Deathbird, Jiang shi Mika Phoenix, Venkai Deathbird, Vegeta Deathbird, Viral (TTGL), Vegeta (DBZ), Pinkamena (MLP), Ryoma Nagare (Shin Getter Robo), Karkat Vantas (Homestuck) Gaster (Undertale), Beerus (Dragonball Super), Starlight Glimmer (MLP) Purple Sector Team: Ketsu Oblivion, Masako Tengu, Yokorona Oniika, Shadia Obilvion, Herro Tranzam, Ganondorf (Legend of Zelda), EVA Unit-01 (Rebuild of Evangelion), W.D. Navy Sector Team: Elena Sphinx, Fang (Final Fantasy XIII), Jennifer Hathaway/Adamant, Nico Minoru (Marvel), Raiden (MGS2), Diego Brando (JJBA Part 7), Corvusine, Wounded Snake, Mei (Overwatch), Rarity (MLP) Orange Sector Team: Hollow Deen, Palette, Din-Din, Amun, Yami Bakura (YGO!), Yami Yugi (YGO!), Future Trunks (DBZ/DBS), Peridot (Steven Universe), Ed (Ed Edd n Eddy), Mettaton EX (Undertale) Green sector team: Numa, Numette, Gladas, Clover Green, Sora (Kingdom Hearts), Fillia (skullgirls), Link (Legend of Zelda), Nagisa Momoe (PMMM), Mami Tomoe (PMMM), Applejack (MLP) Blue Sector team: Sergio, Marta Rose, Princess Bubblegum (Adventure Time), "Mone" (Splatoon), Modern!Sonic The Hedgehog, Megaman X, Papyrus (Undertale), King Dedede (Kirby), Sayaka Miki (PMMM), Rainbow Dash (MLP) Red sector team: Mike Phoenix, Mika Phoenix, Creator!Michelle Phoenix, Goku Phoenix, Simon (TTGL), Luffy (One piece), Sans (Undertale), Jade Harley (Homestuck), Pinkie Pie (MLP) Madoka Kaname (PMMM) (Note, BOLD indicates a new character to the Legend of Phoenix Corps series.)
also, there are more members you start out with at the start of the story. there's also more then 7 teams this time.
almost all members from LOPC:IW1 are here as well as a new member per each team. but as far as each story goes, it's much different. the intro is slightly varied and the final boss is somewhat the same with slight differences. The story is somewhat shared between all teams this time.