"She does not find her purse."
Translation:היא לא מוצאת את הארנק שלה.
It's always a little irksome when Duo (at least seemingly) throws a random new term at us without introducing or explaining it. So, as you say, it replaces לא rather than meaning "doesn't have" ... because I would have guessed that saying " היא) איננה הארנק שלה) " would mean "she doesn't have her wallet/purse"
Depends on the size; ארנק is smaller and usually contains mostly money/cards. It also doesn't have a handle.
Thought so. So shouldn't this sentence actually be translated "She does not find her wallet"?