"Facciamo il colazione" is wrong first of all because "colazione" is feminine and also because nobody says "facciamo la colazione", it would mean that you are preparing it not eating it.
And it didn't accept 'You are having breakfast', by corrected me to say 'You are eating breakfast', povera lingua inglese ed italiana, dove siete??? :(
Tecicamente ha fatto bene a correggerti, anche se di fatto la frase proposta non la usa nessuno in italiano e sarebbe più opportuno un "Noi facciamo colazione".
I think it is important to clear this up. Is it mangiare or fare? Mangiamo la colazione doesn't sound natural, I don't think it's what an italian would say, or is it?
I have listened to this over and over and I swear it says "LUI mangiamo," at normal speed. I KNOW that's not correct, but that's what I hear. A slow speed I hear "Noi mangiamo," which is correct.