Can I exchange my engraved brand new Apple pencil 2 with Apple pencil 1

While Apple offers a trade-in programme for iPad, iPhone and Mac, trade-in does not extend to accessories such as Apple Pencil.

As mentioned by babowa, Apple does offer the facility to return an undamaged/unwanted item within 14-days of its original purchase from Apple - although personalised items may be excluded in some instances. By your description, you are well beyond the 14-day cutoff - and as such the opportunity to return and exchange your Pencil is lost.

In such circumstances, selling the unwanted item privately is often the only way to recover some of the purchase cost - although personalised items may not be attractive to the subsequent purchaser.

You might also need to consider that if your Pencil has not been charged for an extended period, its tiny internal battery may now be completely dead and unusable. All Li-ion batteries ultimately have a shelf-life - and must be periodically charged, even if unused.

You can return Apple products for 14 days after purchase.