Wow. I'm very surprised by this. With the exception of the ending(which is very Blair Witch), Blair Witch was a better Layers of Fear 2 than Layers of Fear 2 was.
Seriously though, if you enjoyed the first Layers of Fear and had the option to play Blair Witch or Layers of Fear 2, definitely go with Blair Witch. Layers of Fear 2 had a janky enemy system, the story was confusing for those who didn't work super hard into it and was genuinely unsatisfying. It felt like they just had a ton of ideas and settings and wanted to throw them all into a single game. Meanwhile, similarly to LoF, Blair Witch had a mostly consistent setting that utilized different locations in the woods to the area not feel repetitive, had a story you could actually follow, covered the insanity of the character/reason why they were like that well, and their enemy system wasn't always just pointless chase sequences(which get old real fast when you get caught for the umpteenth time). Their use of the camera was a very new and fresh game mechanic too that I've only seen done in one or two other small time indie games before.
Like I mentioned, the only thing that I didn't too much care about was the ending which I won't spoil here but no matter what ending you get, it definitely matches the Blair Witch setting over the Layers of Fear one.
Bonus Part: Does the Dog Die?
Long story short, unless you are a jerk and actively let them die, they will not die. You hold on to your precious doggo and give them pets and they will be fine.