If nothing else the ammo bunker issue was on the list of things to be fixed. Assuming butterfly's don't see her assigned somewhere else she won't blow up from Bismarcks first salvos. Hood is still an upgraded battle cruiser (and the RN knew it, they never saw her as a battleship) so it still may not do well in a long gun battle, but the bismarck has flaws of her own. It's too long (due to having the guns in double rather than triple turrets) making a bigger target and it's steering is pretty vulnerable. Both ships are relics of the pre-jutland era, Hood being the result of desperate redesigns after the flaws in battle cruisers were exposed (and which the refit might finally have remedied). Bismarck meanwhile is a product of a two decade layoff in German battleship building that ensured it did not incorporate the design lessons learned in WW1.
In a Bismarck vs refit hood and Prince of Wales clash things probably go rather better than OTL. POW still has working up issues (it still had yard crew on board during the fight it was so new). But a fixed Hood will be able to rain salvo after salvo down on Bismarck, while POW will be a bit slower but firing as well.
Assuming they don't cripple Bismarck quickly it probably turns into a gun fight like the North Cape, with the British in a stern chase exchanging salvos while the cruisers try to close and torpedo the monster. Eventually they will wear Bismarck down and she ends up on the bottom a few days earlier than OTL. I expect it will be a hard fight but without the Hood blowing up the Bismarck won't gain the rep it did in OTL. Instead the battle will be remembered like the North Cape a throwback to the last war in which a German ship was outnumbered, outgunned and out fought in a traditional gun action.
If Bismarck fails to give good account of herself the RN may be less worried about a German fleet in being later in the war. It would be clear that as surface raiders the German ships are at best flawed, and they are no match in a fight for the modern British battle wagons, so there might not be so much pressure to keep a strong fleet close to home. More ships could be freed up for the East earlier and just keep the Nelsons and a couple of KGV''s in home waters to handle Tirpitz or scharnhost if the stick their nose's out of their fjord's.
Probably more attention would be drawn to the weakness of the Bismarck design in post war histories and the German surface navy would be even more a footnote than it was in OTL. I don't know what state Hood would be in after a long gun duel although since the Bismarck will be more worried about leaving the area than fighting the RN ships may not be hit that hard.
Probably Hood serves on throughout the war but by 1945 I expect it will be in the same position as the two Nelson''s. Since it will still be one of the most modern ships (due to the "holiday" between the nelsons and the KGV's) it will have been worked very hard and is unlikely to have time for a major refit after the 1941 one. By 1945 it will be clapped out, in need of massive work to stay in service and largely obsolete I the world of the carrier. Probably she goes to the brakers around the same time as Rodney , say about 1947.