
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.

biased
Not being impartial or neutral because a personal interest or prejudice could influence one's judgment, especially in a legal context.
Der Richter wurde für befangen erklärt und vom Fall abgezogen.
The judge was declared biased and removed from the case.
'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
With the meanings given here, verlegen and befangen are not interchangeable. The verb verlegen here means putting an object somewhere and later not finding it again. The adjective befangen, by contrast, describes a person who feels insecure or inhibited when interacting with others.

Während des schwierigen Gesprächs wirkt Nina unsicher und befangen.
During the difficult conversation, Nina seems insecure and inhibited.
Vor dem schwierigen Gespräch hat Nina ihre Notizen verlegt.
Before the difficult conversation, Nina misplaced her notes.