"One cannot live here."
Translation:Здесь нельзя жить.
A more neutral word order usually has time and place near the beginning of the sentence, unless they are a part of the message.
You may read more here, though, of course, it is more a set of guidelines than a set of universal rule for ANY sentence. We do not follow the most neutral word order ever, just pick out those word orders that sound rather natural (at least, without some very particular context or intonation to justify why the sentence is all backwards).
Maybe in this situation:
"Hello. Where can I not smoke?"
"Oh, you can't smoke right here"
Does this sentence mean more "it isn't possible to live here" or " You are not allowed to live here". Or is it entirely dependent on context? I previously thought "нельзя" had more of a "forbidden" meaning.
This is a terrible translation. Especially for a test. In English (as well as some Russian) making "One" or "один" the subject changes the meaning of the sentence. Even if we're not going for %100 literal.
Guys If you wants us to stop making stupid mistakes : you are going to have to make a lesson on the Moscovite word order ( Or at least the one that is asked by Duolingo ) you know as a bonus lesson on the store or whatever : but make a standard that we can all learn for a matter of convenience.