There is unfortunately nothing that we can do about this. The Duolingo software automatically allows for "has" to be contracted everywhere, which isn't the case in English. I believe that the developers are already aware of this. This same thing happens in every course on the website, not just ours :)
He's has two meanings. 1. he is 2. he has Note that the ending consonant of both "is" and "has" is a "s", which is the part that commonly gets left behind when speaking colloquially. Therefor Duolingo is right in giving this answer, as it still is technically correct, although it might confuse some people
No, this is only partially correct, but not here. If you read AlexinNotTurkey's response from a year ago, you'll see that NatalieMkd is right to be confused. In most dialects, "he's" as a contraction of "he has" is only used to mark the perfect tense ("He's done something.", "He has done something."), and not to signify possession ("He has something."). the usage of "he's" to indicate possession is so non-standard that it would be more accurate for Duolingo to not accept this answer, and better still to not actually state it as the preferred answer.
In a grammar book which is published by Oxford, it's written "with the action verb have we cannot use got and we cannot use a short form" and then it provides an example that "I've a shower everyday " is a wrong sentence because "have" here is an action verb, so the use of short form is wrong. What I get from this lesson is that we can use short form when the verb "have" is a stative verb. The book's name is " Oxford Practice Grammar", by the way.