That should be correct. Maybe no one has reported it yet. Technically "aus" does not translate to "from," but the meaning of the sentence as a whole does.
"From lether" has a spelling error, and, more importantly, is not correct English, where "of," "made of " "made from," "made out of," and sometimes a noun used as an adjective are used to express the material used to make something.
"A leather bag" or "a bag made (out) of leather" would be idiomatic.
I would not use "a bag of leather" in this case, as it sounds as though the bag contains leather.
You shouldn't use from to give the material used to make something. Made of is a pretty safe way to translate aus.
It can be! Fashion vocabulary is a complex subject. One summer about ten or twelve years ago, the local department store had a display of "Body-Bags"--that's what they called them!--which were shoulder bags which were worn close to the body. Ummm, that's not what a "body bag" is in the USA. The same store featured "Neck-Holder-Tops," which I would call halter tops.
Many big German stores have online catalogues you can browse through. Here are a couple: Quelle Karstadt You can use the catalogues to learn color nuances, fashion details, terms for household items not taught on Duolingo
Well, according to Duolingo it's not... And Pons thinks about the same. It says Tasche is bag or pocket. A purse would be Geldbeutel, Geldbörse or Portmonnaie. Interestingly enough, a handbag (Pons says it's called purse in American English) would be Handtasche; does this mean sometimes one could say Tasche and mean handbag? Maybe... But I'm neither a German or English native speaker so maybe it's best I shut up.
This sounds like something that should be reported to Duo. I'm a native speaker of American English, and people would call that accessory a purse, a bag, a handbag, ...
I speak German, and I would call the same article a Handtasche or a Schultertasche or just a Tasche.
In the big bag, you usually put a smaller article for cash and credit cards. That would probably be a wallet (not a purse) in English and a Portmonnaie or maybe Geldbeutel* in German.
(Haha--I just looked at the online edition of Brigitte, a popular women's magazine, and found die Half-Moon-Bag for a semicircular bag. )