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Grilled Summer Squash and Red Onion with Feta

['1/2 cup plus 3 Tbsp. extra-virgin olive oil, plus more for grill', '1 garlic clove, finely grated', '1/4 cup white wine vinegar', '4 medium summer squash and/or zucchini, cut lengthwise 1/4" thick', '1 medium red onion, cut through root end into 8 wedges', '2 bay leaves', 'Kosher salt, freshly ground pepper', '8 oz. feta, crumbled into large pieces', '4 banana peppers from a jar, thinly sliced crosswise', 'Generous pinch of crushed red pepper flakes']

Prepare a grill for medium-high heat; lightly oil grate. Whisk garlic, vinegar, and 1/2 cup oil in small bowl to combine; set marinade aside.
Toss squash, onion, and bay leaves on a rimmed baking sheet with remaining 3 Tbsp. oil to coat; season generously with salt and black pepper.
Arrange squash and onion on grate. Grill squash, undisturbed, until grill marks appear, about 3 minutes. Turn over and grill on second side until tender and starting to release liquid, about 2 minutes. Transfer squash back to baking sheet. Grill onion, turning occasionally, until tender and charred around the edges, about 5 minutes. Transfer back to baking sheet.
Arrange squash, onion, bay leaves, and feta on a rimmed platter and pour reserved marinade over. Scatter banana peppers on top and sprinkle with red pepper flakes. Let sit at least 15 minutes and up to 1 hour before serving.

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