Microsoft hasn't officially announced Windows Phone 8.1 Update 2, but it appears the new update will ship on the recently announced Lumia 640 and Lumia 640 XL devices. Windows Central has confirmed that Microsoft has tweaked the way settings work in Update 2, with a list that's organized by categories. It's not quite as cleaned up as Windows 10, but it does break the various settings into sections, and there's even an option to pin individual settings to the home screen. Several third-party apps have enabled you to do that for years, but it's about time Microsoft finally implemented this natively.
Elsewhere there's also Bluetooth keyboard support. These Bluetooth improvements allow devices like Microsoft's recently announced foldable keyboard to work on Windows Phones, and they naturally pave the way for more improvements to apps for Windows 10 to accommodate real keyboards. Microsoft also appears to have tweaked app permission settings, allowing Windows Phone owners to disable access to the camera and other privacy features on a per app basis. A new "quick text" feature also gives you access to pre-defined phrases to paste within the keyboard of Windows Phone 8.1 Update 2. We're waiting to hear further details on Microsoft's latest Windows Phone update, and when the company plans to deliver this to existing devices.