"He has bread."
Translation:Er hat Brot.
Because it is a noun.
"In German, all nouns are capitalized."
This is literally the first sentence of the first paragraph of the tips and notes to the first lesson in the German course: https://www.duolingo.com/skill/de/Basics-1
Please always read the tips and notes for a new unit before starting it.
The tips and notes are currently only available on the Duolingo website, not in the mobile apps.
I recommend using the website for learning, though the mobile apps may be useful for reviewing material you have learned previously.
Nearly all units have tips and notes that explain German grammar and answer frequently asked questions. Please read them. Thank you!