Yup, me too, and as I've said elsewhere four people saying it means it's a real issue and DL should consider accepting alternatives which are grammatically correct and indistinguishable. (Although in the case of the German course I really think they should get their voices sorted out: those two SHOULDN'T be indistinguishable, surely?!)
Your confusion probably stems from these two things:
- The sentence "Do you see me?" can be translated to German in three ways: "Seht ihr mich?" = when you are talking to a group of people (2nd person plural). "Siehst du mich?" = when talking to a single person (2nd person singular) or "Sehen Sie mich?" when talking using the polite form to a single person OR to a group (Formal 2nd person singular and plural)
- The German 2nd person plural personal pronoun in the nominative case (ihr) is similar to the formal, singular and plural, personal pronoun, in the dative (possessive) case (Ihr). "Ist das Ihr Kind, Frau Müller?" "Is that your child, Mrs. Mülller?" = possessive. "Könnt ihr mich hören?" = "Can you (all) hear me?" = nominative
You only capitalize personal nouns, when you are using the formal forms:
Sie (nominative and accusative) Ihnen (dative) Ihr (genitive)
"Seht Ihr mich?" is not using the formal form, but the non formal.
Does that make it clearer?