Translation:The man, whose daughter lives around the corner from me, is too tall!
I agree and have reported it. Did you report it? Occasionally posting to the boards gets fast results - if staff happen to see it and think it's a good enough point. But the report button is the formal route. I think whether it's adopted takes account of how many users made the same request. So if you see but don't use the button, you don't help it get fixed.
No, bij mij om de hoek refers to around the corner from me. If you wanted to say that she lives with me around the corner in this sentence you could use the same wording but you need to put comma's before and after om de hoek.
However, saying that I would stay clear of constructing a sentence like that because you end up putting too much information in one sentence.
Haha, beat me to it! I was just replying that even if you could translate it that way, it would be an unnatural and implausible translation (even by Duolingo's sometimes whimsical standards). If the key topic was the father of someone who lives with you, it seems an unnecessary level of qualification to add in WHERE you both live.
How do you do bold and Italic, by the way? Does it accept normal HTML markup?