Question: Is the 1989 Ghostbusters II film still canon or does this film retcon it?
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Answer: Yes, it is still canon. Director Jason Reitman has confirmed it is, and there are actually lots of easter eggs referencing it in "Afterlife." For example, Ray still has his bookstore from "Ghostbusters II." The "dancing toaster" is in the farmhouse. Etc. They chose not to directly reference it in dialogue since it didn't have much to do with the plot, but there are plenty of hidden details confirming it is still canon. Reitman has also said that there are plans to possibly bring back more plot/characters from "Ghostbusters II" in the future. (It just depends on what direction the sequel ends up going in).
TedStixon