"we were standing in the street and were talking" should probably also be added
This translation seems awkward.
We were standing on the street talking would be more like it.
We were standing outdoors and talking
I don't know English too well, but this sounds sooo weird Shouldn't be at least "talked" instead of "talking"?
It could be "we stood outside and talked" or "we were standing outside and talking" which goes better with this particular Russian phrase. You would never say "we were standing outside and talked."
Is "and" really needed, though? I'm also not native but "we were standing outdoors talking" sounds much more natural to me.
Alright, you have that "и" there, but as far as I understand Duolingo, it wants you to learn the meaning and not word by word translation...