精肉店이 여기 近處에 있습니다.
'The butcher is near here' isn't accepted, but in english it would be ok to leave out 'shop' because that is generally what you would be inferring, ie 'butcher' for 'butcher's shop'
"Butcher's" is accepted (not just "butcher".)
Butcher's > the shop
Butcher > the person
I think they want to specify that they're talking about the shop not the butcher himself.
it's often called a butcher's
"The butcher's shop is nearby." connotes the exact same meaning as the Durolingo nearby.