"Yo estaba dejando la comida."
Translation:I was dropping off the food.
Just checking my English: I was dropping the food off. (First thing that popped into my head).
That's what I put, just with the object last, and DL accepted. In yours (with the object within the phrasal verb) should be fine, too, in my opinion.
Edit: I had the same sentence a few minutes later and tried with "drop the food off", and DL didn't like it.
With the 'estaba dejando' you would need to translate with a progressive tense- was dropping off/leaving
This would be exactly the same as "Yo dejaba la comida", right? Or am I missing out on some nuance here?