Translation:There are too many people here.
Exactly. "There are too many people in this place" is very common. Plus, people need to understand learners' point of view. When you have just learnt the word for "place" it doesn't make any sense to omit it in the answer. It's a typical Duolingo problem. We end up spending wasting too much energy on guessing the English expression the program requires; even as native speakers.