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What is the correct parsing of the headline? At first I figured it was a regular garden-path sentence [1] but after multiple readings I still can't figure it out.

[1] A garden-path sentence is one where you find at the end that the expected parsing is wrong. e.g. "The old man the boat" or "The horse raced past the barn fell". https://en.wikipedia.org/wiki/Garden-path_sentence

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New evidence was released in the DOJ vs Google case. The judge for the case called this evidence "embarrassing" to Google.

It's a bad headline. There's no a complete sentence here. "DOJ vs. Google evidence release" is a noun phrase ("release" here is used as a noun), modified by the clause "that judge calls embarrassing exhibit". In that clause, "judge" is the subject, "calls" is the verb, "that" is the direct object, and "embarrassing exhibit" is an object compliment, which refers to the same thing as "that". So basically we just have a big noun phrase.

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