Abiti also means clothes per the Collins Italian to English Dictionary. I have no idea why Duolingo is not accepting that option.
Are you referring to "abbigliamento donna"? That's a funny phrase, because it is mostly used for indicating a department, maybe on a website that sells clothing or in a store that sells various types of apparel. "The clothes" has many more uses, and it is just fine translated one to one.
lo is also used in front of masculine (not "male") nouns. When you see words like l'abito, it's not il but lo being shortened to l'. You can deduce this by the fact that the plural article in front of masculine nouns starting with a vowel is gli rather than i; the plural is gli abiti.
You see the same pattern with masculine nouns that start with s + [consonant], gn, and z, e.g., lo stivale/gli stivali.