Which insulation type uses Styrofoam-like material for filling masonry-block walls?

The correct choice is based on the material utilized for insulation in masonry-block walls. Shredded-styrene insulation is derived from expanded polystyrene, which closely resembles the properties of Styrofoam. This type of insulation is particularly effective for filling cavities within masonry structures, as it provides excellent thermal resistance while being lightweight and moisture resistant.

In contrast, the other options mentioned do not share the same properties or formulation. Shredded fiberglass is made from glass fibers, cellulose insulation is primarily composed of recycled paper products treated for fire resistance, and vermiculite insulation consists of exfoliated mineral that holds air pockets but does not provide the same filling and insulating characteristics as Styrofoam-like materials. Therefore, the distinction of using Styrofoam-like material makes shredded-styrene the suitable answer for this context.