English Translation
He is respected by everyone.
Is there any context where one should use “uszanowany” instead?
Yes, I would understood On został uszanowany przez wszystkich as Wszyscy mieli do niego szacunek, talking about a specific situation in the past. Note the passive voice is used less common than active voice in general.
The cloze focuses on the present, so szanowany has to be used.
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