Home directory for user2 had been created before I ran those commands, because it is an old home directory that user2 used before I re-installed Manjaro.
does it show the right username as owner for ‘user2’?
If you take a look at ‘/etc/passwd’ there you can see the userIDs and groupIDs for every user. And files/directorys are marked with these IDs as owner, not with the username.
Are you sure that the userID in ‘/etc/passwd’ is the same as in your old installation. UserIDs for normal users start at 1000 and are count up with every new user.
Also in ‘/etc/passwd’ you can see which home-directory is set for every user.
For simple you can try to rename/backup the old user2-folder, then delete user2, add user2 again with a fresh home-directory and try to login. If login works copy back the files from the old user2-folder and run 'chown -R’ for the new user.