what is the difference between hidup and tinggal
it is not different you can use both hidup or tinggal but it is more natural to use tinggal
Hidup also specifically means to exist as in life.
Saya tidak tinggal di Jepang is not one of the options!
I feel like "tinggal" would be more commonly used here than "hidup."
Yes. Using "hidup" sounds very awkward to me.
From my understanding bukan negates a noun and tidak negates a verb.
Why is "saya tidak tinggal di negeri Jepang" not correct?
That is also correct, but it is too formal. In conversation, we don't usually use "negeri".
why can't you use bukan rather than tidak?
You use bukan when something isn't. Tidak is for actions