"O traje é teu."

[JCMcGee]

At the normal speed the e/ (is) can't be heard.

Is this an error in duolingo or because the word "traje" ends in an "e" do they just merge into one when soken?

[Paulenrique]

The second option. We link he sound. So, the letter E in traje is not pronounced, but you say just the next letter: "é"

[melesana]

I heard it as "...feio", instead of "teu", which makes just as much sense. The bot didn't think so, though.