No the actual translation is not "moon is taken by star, heart is taken by love" It seems like people are confused with the term 'lagyo' thinking its taken but if u hear it properly in the song its laaagyo which is hard to translate and its a word with multiple meaning but i think its like "felt/feel" or "start/appear" so its correct translation :
Moon appears cuz of star
love was felt by heart
while everybody was
looking at this and that hill

by picking bunch and bunch of multi colored flowers
the road u walk will be filled by dreams
everybody will treat you like the apple of eye


And yes most nepali song lyrics don't make sense but this song actually makes some sense "moon appears cuz of star"{where does moon get light from?the sun | is sun a star?yes }i think this much explain a lotta things