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Adapted from bonappetite.com
Combine shallot and vinegar in a small bowl; season with salt and pepper and toss to combine. Let stand for 30 minutes. Meanwhile, place tomatoes on a large rimmed baking sheet; season with salt and let stand for 15 minutes.
Transfer 2 tablespoons of vinegar from the shallot mixture to a large bowl (reserve the remaining vinegar with shallots). Whisking constantly, gradually add oil; whisk until combined. Season dressing with salt, pepper, and more vinegar from the shallot mixture, if desired. Add tomatoes and their juices to the dressing and gently toss to coat. Let tomato mixture stand at room temperature until tomatoes release more juices and soften slightly for about 1 hour.
Add arugula and croutons to bowl with tomato mixture; season with salt and pepper and toss to combine. Drain pickled shallot. Serve Panzanella topped with pickled shallot.
Meanwhile, preheat the oven to 350°. Combine bread and garlic on a large rimmed baking sheet and drizzle with olive oil; season with salt and pepper. Squeeze bread pieces lightly with your hands so they will evenly absorb oil and spread out in a single layer. Bake bread pieces, tossing occasionally, until crisp on the outside but still chewy in the center, 10–15 minutes. Let croutons cool slightly, then discard garlic.
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