Hopefully you at least pulled the burlap back, if not completely off. Field grown stock often has problems with the original soil ball drying out and being hard to re-moisten, that will be your main thing to watch for.

Also in my area a blight is spoiling many of these in recent years, if you have that there as well you may be in for seeing much of your new tree go brown.

Yes I removed burlap completely. Rootball collapsed though.

These are tough trees in the right environment. They are well-suited to our Mediterranean climate here - I don't know but am guessing that the problem in the PNW is too much water. I have transplanted enormous specimens (they were free to me if I got them out) and they had minimal roots at transplant due either to the poor original siting (in a parking lot) or my inability to get much of a root ball when I moved it. Since your root ball fell apart, make sure that it gets enough water for the first year or so so that it can establish a healthy root system. Once established, they are quite drought-tolerant.

Tree looks fine..., not sure why you're worried, but you did transplant at a difficult time with heat and drought. They are drought resistant once establish (as said above), just remember it may be three three years till it's considered established.

There are many fine specimens on Long Island and New Jersey. The main problem I see is that people plant them in small spaces without realizing their growth potential..., Cedars can grow to be enormous trees!

Not worried, just wondering about the brown needles here and there. I guess it's normal at this stage.

The fungi Sirococcus conigenus, S. tsugae and Kabatina sp. have been associated with blighted needles of Altas (Cedrus atlantica) and Deodar (Cedrus deodara) cedars in both Oregon and Washington; however, Sirococcus
is found most often. More of a problem in years with prolonged wet,
cool springs. Infection is on or adjacent to needle bases on new shoots.
The disease cycle is completed in 1 year, although spore dispersal from
dead parts may continue an additional 10 months. The fungus overwinters
in dead shoots. Conidia are dispersed by splashing water during the
spring and summer, with peak dispersal during the period of host shoot
growth. Temperatures of 60°F to 70°F are most favorable for disease
development.

http://pnwhandbooks.org/plantdisease/node/2916/print

I've seen multiple examples that were left like 40% or more brown, looked awful.

looks fine to me, they are supposed to look like a mop

They are NOT supposed to look like a mop! With even a little judicious pruning they are some of the most graceful, elegant trees you can imagine. When talented pruners work on them they can be amazingly sculptural. The bark is satiny and the trunks can be made to curve every which way. Amazing trees.

every one I have ever seen looks like a mop LOL

One of the most beautiful trees I ever recall seeing was a weeping cedar planted on a berm. I will never forget it.

Needge drop stopped but now some needles are dropping again. Should I remove these branches with no needles left or leave it? Will the needles grow back? some of the needles dropping are healthy green looking.

Some problems are to be expected with a tree planted in the summer. They generally do great in Massachusetts, and your tree looks fine to me. Watering twice a week is probably excessive...cut back to once a week or even once a month. DON'T use any more fertilizer, particularly this time of year. I wouldn't cut anything off yet...next Spring you'll be able to see better what branches are dead.

Now that the weather is cooling down I will cut down to once week or 10 days. Overall it looks fine but I've been worried about the needle loss. I guess it's still going through transplant stress

Watering on a schedule is not wise without knowing for certain that the soil is dry. What if that site, your soil, and your climate all combine to hold moisture for a lot longer than you think?

Over watering can prevent a new tree from becoming established, can even kill roots.

I check the soil before I water.

I think that it will be ok - these are tough plants and there is definitely an adjustment period, Good choice!

It looks like transplant shock from severing some of the trees roots. I've had this happen to be before. Hopefully the tree will get through it. I wouldn't remove the branches unless it is dead. Next year the needles will regrow on the live branches.