Let $E$ be a rank two vector bundle on $\mathbb{P}^n$. Assume that $\text{Ext}^1(E, E)=0$. Will $\text{Ext}^2(E, E)$ be zero? Why? Any geometric explanation (in terms of deformation theory?)?
Edit: As pointing out by Angelo, in the case $n=2$, the answer is no. However, I really want to know when $n\geq 4$.
To complement Angelo's answer (which you should accept, as it answers your original question):
If $\mathrm H^1(E^\vee \otimes E) = 0$ then $E$ must be homogeneous, see for instance Theorem 3 this paper by Mohan Kumar.
It is well-known that homogeneous vector bundles on $\mathbb P^n$ of rank less than $n$ splits as a direct sum of line bundles (Theorem 3.2.3 of Okonek-Schneider-Spindler). So if $n>2$ the answer to your question is yes.
No. When $E$ is a sum of two line bundles on $\mathbb P^2$, then $\mathrm{Ext}^1(E, E) = \mathrm H^1(E^\vee \otimes E) = 0$, but $\mathrm{Ext}^2(E, E) = \mathrm H^2(E^\vee \otimes E)$ is not necessarily 0 (for example, take $E = \mathcal O \oplus \mathcal O(3)$).
