Character image animation aims to synthesize high-fidelity videos by transferring motion from a driving sequence to a static reference image. Despite recent advancements, existing methods suffer from two fundamental challenges: (1) suboptimal motion injection strategies that lead to a trade-off between identity preservation and motion consistency, manifesting as a "see-saw", and (2) an over-reliance on explicit pose priors (e.g., skeletons), which inadequately capture intricate dynamics and hinder generalization to arbitrary, non-humanoid characters. To address these challenges, we present DreamActor-M2, a universal animation framework that reimagines motion conditioning as an in-context learning problem. Our approach follows a two-stage paradigm. First, we bridge the input modality gap by fusing reference appearance and motion cues into a unified latent space, enabling the model to jointly reason about spatial identity and temporal dynamics by leveraging the generative prior of foundational models. Second, we introduce a self-bootstrapped data synthesis pipeline that curates pseudo cross-identity training pairs, facilitating a seamless transition from pose-dependent control to direct, end-to-end RGB-driven animation. This strategy significantly enhances generalization across diverse characters and motion scenarios. To facilitate comprehensive evaluation, we further introduce AW Bench, a versatile benchmark encompassing a wide spectrum of characters types and motion scenarios. Extensive experiments demonstrate that DreamActor-M2 achieves state-of-the-art performance, delivering superior visual fidelity and robust cross-domain generalization. Project Page: https://grisoon.github.io/DreamActor-M2/