'Play with a ball' is not the same as 'play ball'. Is 'joueront avec un ballon' impossible French?
You are right. It should be avec un ballon.
"Les enfants joueront avec un ballon sur l'herbe" is accepted
surely this translates as " at the ball"
Used avec and it was marked wrong. But is Duo right about this? And in my experience of being in France les herbes (plural) is frequently used when referring to grass.