I’m not wavering from Hendrix/Warchtower as the best cover, but I had forgotten just how mighty this was:
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ETA: the reason I remembered this cover was that I was idly wondering which was the most covered Dylan song. The answer is depressingly obvious, according to second hand songs: Blowin’ In The Wind
Here’s my fave, a cover of “A Simple Twist of Fate” by the fantastic Johnette Napolitano & her band Concrete Blonde. Johnette’s is the kind of expressive voice that can give new life to any song.
Great one I’ve never heard before! Van even dares to alter some lyrics! They’re soul brothers.
There’s of course also Them’s classic cover of “It’s All Over Now, Baby Blue”.
A lot of good stuff has been posted. As for Dylan interpreters, IMHO the best are the most obvious, the Byrds, and then Rod Stewart with or without the Faces. He had a definite knack for picking deep Dylan cuts and making them into something great. And the two greatest compilations of Dylan covers are the 30th recording anniversary (Bobfest) recordings and the soundtrack of “I’m Not There”. Great, great stuff on both.
Walter Trout is freaking amazing. He battled liver disease (cirrhosis) for years, looking like a walking skeleton at one point. Had a transplant and over a year’s worth of recovery.