Here they pronounce the "o" more subtle than duolingo:
Is this correct?
Apparently it works indeed like German "Entschuldigung", which is a very much shortened version of asking the other person to please forgive (or more literally: to remove from oneself) the "Schuld" (my "fault", closely related to the word for "debt") which one has toward that person due to a misstep.
You'll get used to the d being a "glottal stop", which is how the tt of button or butter is pronounced in some English dialects at the back of the throat.
The y is prounced like saying ooee very fast (or ee with your mouth and lips "rounded" like a slight tunnel) in English, or luke German ü or French u in tu.