Hi @fady_michel and @hanseref,
I have reported this issue to people working on the backend of deeplearning.ai.
I myself had to submit three times to get the notebook to pass (so it did pass in the end).
The predictions look strange, but this is because the model should be trained much longer; that would take too long for this course.
I hope the issue will be resolved soon, or that you manage to pass with the submission after all.
Thanks for reporting!