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Do students who transferred law schools in the second year have to disclose the first school's application on their bar application? To clarify, do you have to add the information such as personal statement and essays from application to the first school you matriculated to on your bar application?

You have to list all the schools you've ever attended, so you'll have to list your 1L school. You don't personally include the material from your application (at least I've never heard of that being required), but schools can go and look at your application to the 1L school to confirm that the information provided there is consistent with your bar app. If there's something missing/inconsistent with your other paperwork you're usually advised to go back and amend whichever application is leaving something out.

(If your PS said 1L school was your TOP CHOICE EVER and you were going to practice in 1L school area forever and NEVER LEAVE, and then you hightailed it out of there to move across the country for your transfer school, no one's going to care. They want to check things like how you represented your work/educational/criminal (if any) history. On the other hand if your PS claimed something completely untrue, like you were part of the military special forces that caught/killed Bin Laden and that's why you'd be a great candidate for school X, something like that might be a problem, but generally no one's going to care what you wrote in your PS/essays.)