Usually there is a bumper on the chrome metal shock shaft. There are also rubber bushings at the eyelets, and those can wear out with wear, exposure to UV light, and ozone, things which affect rubber. The shock may be rebuildable. If it's leaked oil, it will definitely be clunky. Also, two inches is probably what I'd consider too-much of a drop in length, and as it reaches full compression, you're contacting something like the tire and the underside of the fender.
The best way to rule-out the last issue, or to see where there is interference at full compression, is to use a strap or a come-along to ratchet down the shock and observe where there is interference. If you wanted to take the time, you could remove the shock springs and re-install the shocks, and find where the interference is.
Personally, I think a drop of 2" is too-great. I suspect your angle at rest on the sidestand may be insufficient to hold the bike at a proper lean angle, where a strong wind could topple the bike. I bet your centerstand will be much-harder to operate now, also. Another thing is that if you corner aggressively, you may be dragging parts, like the sidestand tab, the centerstand, and the megaphones of the exhaust.
The highest recommended drop is 1-1/2" in shock height, to minimize these types of issues.