Sentence 2 is correct (but isn't very well constructed). I understand it to mean something like: "He", a student at a music school, auditioned to be selected as the piano player at the school's concert. In English "to listen something" is incorrect; it has to be "to listen to something". In sentence 2, the first part ("He was listened to") is in the passive, with "by a teacher" implied by the context. Compare (both correct): [to listen to]: He was listened to to play the piano at the concert [to choose]: He was chosen to play the piano at the concert

Both of these are wrong. The correct and most effective way would be "He listened to the piano at the concert." If you want to make it a gerund "He was listening to the piano at the concert." Also, you only need one to. In English there will never be an instance where "to to" occurs.