You can substitute butter in equal amounts for either vegetable oil or shortening in most recipes.
Sounds like there was a mistake in the instructions. The oil provides moisture, which is why your bread was dry. Applesauce can be used in place of oil for a healthier bread, but I'm not sure if the proportions are equal, so it would be best to look that up if you go that route.
Some do require butter, veg. Oil, or other moister inducing products such as Crisco. It depends on the recipe and the baker's preference.
I always recommend if it's your first time to make something to always make it as the instructions suggest before deviating from the recipe. However, you can change out from the brand suggested to your preferred brand but keep in mind that there is going to be a difference even if it may not be apparent. This is because different companies process and add different ingredient to make their products.
This doesn't mean that it will make the recipe fail. If that recipe doesn't seem to work for you try a different one. There are a lot of good recipes out there, including mine!
If you keep having an issue ask a friend or family member to help you or teach you their recipe. Remember the cooking instructions are just as important as the ingredient. Also, you might check your ovens temperature as this could off-set the recipe.
Another good idea is remember to grease the pan with something but also to add flour over it and shake the extra flour out. This will help you get the loafs out of the pan. It makes for a pretty banana bread.
Hope this helps! :).
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