"In this picture, there is me and my friend Judy in front of my house."
Translation:في هٰذِهِ الْصّورة أَنا وَصَديقَتي جودي أَمام بَيْتي.
Previously we were taught to use hunak for "there is". When omitted, the answers were rejected. Now if I understand correctly, it isn't obligatory at all?
In Arabic, the word هناك /hu.naa.ka/ is an Adverbial of Place (a bit like in English). Thus, when a sentence has a more specific Adverbial of Place (like here "In this picture" = "في هٰذِهِ الْصّورة"), it is preferable stylistically to completely omit the هناك /hu.naa.ka/ and replace it by the more specific Adverbial of Place.
Think of it as if someone spoke poetic/archaic English and said "In this picture is me and my friend Judy in front of my house"