18:31a So they set up for themselves Micah’s graven image,

They worshiped the carved statue Micah had made
-or-
The people of Dan continued worshiping the idol made by Micah.

18:31b and it was there the whole time the house of God was in Shiloh.

even though the house of God was in Shiloh.
-or-
All this time the tabernacle of God ⌊where they should have worshiped Yahweh⌋ was in the town of Shiloh.

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