Even with the experiences in France showing that the Pz II was obsolete, an Armor Committee on July 17, 1941, met to determine how to expand the number of panzer divisions to 36 as ordered by Hitler. It was decided that they would need 4,608 Pz IIs, and equally surprising is that production on Pz IIs continued.
Was used in the Spanish Civil War and it was found that it was outclassed, but the General Staff kept it in production into 1942.
1,223 were used in the invasion. 81 were destroyed by Polish forces. 32 loses were from the 4th Panzer Division that sent them into the suburbs of Warsaw on September 8-9.
After battle experience in Poland some tanks received 20 mm armor bolted onto the front.
16 PzKpfw IIs were with the 40th Panzer Battalion.
For the invasion of France in 1940 there were 955 / ~1,000 available.
Most PzKpfw IIs were used in areas that weren't critical. In the Ardennes, General Heinz Guderian's XIX Panzer Corps had 146 PzKpfw IIs.
By July 1, 1941 there were 1,067 and by April 1, 1942, this had gone down to 866.
In May 1942, during the battle for Tobruk, there were 50 PzKpfw IIs out of a total of 560 tanks. There were still 31 at the battle of El Alamein in October 1942.
Taken off the Frontline
In early 1943, the remaining PzKpfw IIs were withdrawn from frontline units, and deployed in anti-partisan operations and garrison duties.