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Yes and no. I'd be amazed if any code from the original was/could be used for the second. One was unity. Two was unreal. C# vs C++.
The other thing is money. It doesn't get the second dev team paid as well to spend a figurative 5 minutes polishing an old game when they can milk 5 months of pay out of the publisher by making a de-make. If the publisher is paying they might start from scratch just to have it take longer. I can't say for sure, but I would bet real-life money the contract on the second was much more beneficial to the publisher vs the devs on the second than the first.
Then there's marketability. Offer people the same game from 2016 and they'll want to pay the same price as the game from 2016 and many of them won't want to buy it at all because they still have the old one. Offer them something that looks like an upgrade ('Look! It's 3D now, and higher resolution.') and milk people's nostalgia for a game they loved 'in the before times' and you can squeeze modern inflated prices out of them.
Oof, somehow missed that the 2nd was made in unreal. I mean yeah this all makes sense but it doesn't make me happy lol I feel like most players on the Steam community actuslly did want more of the same, just with built in online. Shame.
Yeah. There is unfortunately a lot of media being made as just a cynical attempt to milk people via nostalgia. Remind everyone you can: just because it has the same name as something you once enjoyed doesn't mean it will be good. Nostalgia marketing is always a lie.