"We are eating at the school now."
Translation:Estamos comiendo en la escuela ahora.
Yes it does. Duo's algorithm seems to be that if the sentence contains now, they use the Spanish present continuous.
Nothing, except . . . . Please read the discussion comments already present before posting yours. You may find your question has been answered (as in this case). That will help other learners by making it easier & faster to navigate sometimes-lengthy discussions.