"I'm making breakfast now."
I feel like there could be some nuance here. "I'm making breakfast now" could have a slightly different flavor depending on context. It could be more of a statement of intent, as in "I'm going to make breakfast now," or a statement of fact, as in "I am in the act of making breakfast right now." To me, saying "我现在做早饭" would lean towards a statement of intent. Whereas, if I meant that "I'm in the act of making breakfast right now" I might say something like "我现在在做早饭“ or ”现在我在做早饭“.
Yes I do not understand how it is incorrect because I placed “现在” first, it does not change the overall meaning. It is not directly transferable to English because the "now" placed at the beginning or end does not change the overall meaning. "Now I'm making breakfast" "I'm making breakfast now"