"Yes, and where is he supposed to sleep now?"
Is "Ja, und wo sollte er jetzt schlafen" incorrect? I thought "soll" and "sollte" can be both used in present tense.
"sollte" is subjunctive. I'm not sure how to make an English example with the subjunctive, but that would be why "sollte" is not accepted here (if that's not just an oversight). If "shall" would be ok in English, "sollte" is inappropriate. Here, he is definitely sleeping somewhere, so it is not subjunctive.
Why is "Ja, und wo muss er jetzt schlafen?" not a correct translation? "Yes, and where must he sleep now?" is the same as "Yes, and where is he supposed to sleep now?" right?
I think it comes down to the slight difference in meaning between where someone must sleep, and where they should sleep.