befangen
inhibited
Feeling insecure, constrained, or embarrassed in the presence of others.
Der Junge war in der neuen Klasse anfangs sehr befangen.
At first, the boy was very inhibited in the new class.

inhibited / biased
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inhibited
Feeling insecure, constrained, or embarrassed in the presence of others.
Der Junge war in der neuen Klasse anfangs sehr befangen.
At first, the boy was very inhibited in the new class.

'Befangen' (inhibited / biased) is the past participle form of the old verb 'befangen' (to encompass, to capture), which is rare today. The meaning 'gehemmt' (inhibited) or 'nicht neutral' (not neutral) derives from the idea of being 'captured' by a feeling or an interest.
Er fühlte sich von der Situation völlig befangen.
He felt completely constrained by the situation.
You can recognize the meaning from the context. In social situations, 'befangen' (inhibited) usually describes insecurity or shyness. In a legal or formal context (e.g., in court, in meetings), it means 'nicht neutral' (not neutral) or 'parteiisch' (biased).
Beim ersten Date wirkte er etwas befangen und nervös.
On the first date, he seemed somewhat inhibited and nervous.
In a legal context, 'befangen' (biased) is often used in the fixed expression 'jemanden für befangen erklären' (to declare someone biased). This means that it is officially determined that a person (e.g., a judge or expert witness) is not impartial.
Die Verteidigung beantragte, den Gutachter für befangen zu erklären.
The defense requested that the expert witness be declared biased.
to move / lay / misplace
In this relationship, 'verlegen' and 'befangen' both describe an insecure person in a social situation. 'verlegen' often fits a brief moment when someone is embarrassed or does not know how to react. 'befangen' sounds more like a stronger inner inhibition: the person does not seem relaxed, speaks cautiously, or behaves stiffly. The words can be confused because both show insecurity. 'verlegen' is more natural for embarrassing or surprising moments. 'befangen' fits better when someone seems inhibited over a longer period of time.

Vor der neuen Chefin wirkt der Praktikant noch sehr befangen.
In front of the new boss, the intern still seems very inhibited.
Mia lächelt verlegen, als alle ihr zum Geburtstag gratulieren.
Mia smiles shyly when everyone congratulates her on her birthday.