What did the Dwarves do during the first reign of Sauron, and why weren't they at The War of the Last Alliance?

Question

As the question states we hear that Sauron fell during The War of the Last Alliance where Men and Elves united to take down Sauron and his forces.

But what about the Dwarves of Middle-earth? What did they do during the time that lead up to the war of the Last Alliance (from the forging of the Ring of Power to Sauron's fall at the war of the last alliance)?

Were they themselves besieged by Sauron's forces and as such unable to spare any troops to help in that battle? Did they remain neutral? Maybe the majority actually joined Sauron? What was the reason as to why they aren't recorded as having sent forces (or at least so few that it wasn't recorded anywhere) to battle Sauron along with the Men and Elves during The War of the Last Alliance?

Answer 1

In general, the Dwarves seem to have followed an isolationist strategy during the Second Age. They closed the gates of Moria and secured themselves; the appendices to Lord of the Rings have this to say:

The power of Moria endured throughout the Dark Years and the dominion of Sauron, for though Eregion was destroyed and the gates of Moria were shut, the halls of Khazad-dum were too deep and strong and filled with a people too numerous and valiant for Sauron to conquer from without. Thus its wealth remained long unravished, though its people began to dwindle.

The Tale of Years in the appendices specifies that the gates of Moria were closed in 1697 of the Second Age, the year when Eregion was laid waste, Celebrimbor killed, and Rivendell founded.

The Silmarillion tells how during the Last Alliance every living thing in Middle Earth (even the birds and beasts) was divided, and some of each could be found in both hosts (except for the Elves, who all followed Gil-galad). Thus there were some Dwarves fighting both for and against Sauron; but specifically

Of the Dwarves few fought upon either side; but the kindred of Durin of Moria fought against Sauron.

Answer 2

All living things were divided in that day, and some of every kind, even of beasts and birds, were found in either host, save the Elves only. They alone were undivided and followed Gil-galad. Of the Dwarves few fought upon either side; but the kindred of Durin of Moria fought against Sauron.

The Silmarillion, of the Rings of power and the Third Age

Answer 3

The Dwarves were strongly allied with Men during the beginning of the second age, but it fell apart after Eregion was destroyed, and after that the Dwarves kept to themselves.

The Second Age had reached only the middle of its course (c. Second Age 1695) when [Sauron] invaded Eriador and destroyed Eregion, a small realm established by the Eldar migrating from the ruin of Beleriand that had formed an alliance also with the Longbeards of Moria. This marked the end of the Alliance of the Longbeards with Men of the North. For though Moria remained impregnable for many centuries, the Orks reinforced and commanded by servants of Sauron invaded the mountains again. Gundabad was re-taken, the Ered Mithrin infested and the communication between Moria and the Iron Hills for a time cut off. The Men of the Alliance were involved in war not only with Orks but with alien Men of evil sort. For Sauron had acquired dominion over many savage tribes in the East (of old corrupted by Morgoth), and he now urged them to seek land and booty in the West. When the storm passed, the Men of the old Alliance were diminished and scattered, and those that lingered on in their old regions were impoverished, and lived mostly in caves or in the borders of the Forest.
_{The Peoples of Middle-earth "Of Dwarves and Men"}