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?
The second option. We link he sound. So, the letter E in traje is not pronounced, but you say just the next letter: "é"
I heard it as "...feio", instead of "teu", which makes just as much sense. The bot didn't think so, though.