In plain words
The senses, manas, and buddhi are said to be its dwelling places. Through these it deludes the embodied being by veiling jñāna.
Word for word
The senses, manas [and] buddhi are said [to be] its seat; through these this [desire], having veiled jñāna, deludes the embodied one.
The commentators
Bhagavadgītābhāṣyam
किमधिष्ठानः पुनः कामः ज्ञानस्य आवरणत्वेन वैरी सर्वस्य लोकस्य ? इत्यपेक्षायामाह, ज्ञाते हि शत्रोरधिष्ठाने सुखेन निबर्हणं कर्तुं शक्यत इति —
इन्द्रियाणि मनः बुद्धिश्च अस्य कामस्य अधिष्ठानम् आश्रयः उच्यते । एतैः इन्द्रियादिभिः आश्रयैः विमोहयति विविधं मोहयति एष कामः ज्ञानम् आवृत्य आच्छाद्य देहिनं शरीरिणम् ॥ ४० ॥
In plain words
But where is desire stationed? What is the seat of this thing that veils knowledge and so stands as the enemy of everyone alive? That question is waiting, so he answers it — because once you know the ground your enemy holds, you can destroy him easily. Hence:
The senses, the mind, the intellect: these are called desire's adhiṣṭhāna — its seat, the ground it stands on. Working through them, through the senses and the rest that it occupies, this kāma deludes — throws into confusion in one way after another — the embodied one, the one who has a body, by covering over, by screening off, his knowledge.
Close to the Sanskrit
But having what as its seat is desire, which by its being a covering of knowledge is the enemy of all the world? — in the expectation of this, he speaks; for when the enemy's station is known, the uprooting can be done with ease — thus:
The senses, the mind, and the intellect — of this desire the adhiṣṭhāna, the seat, is said to be. By these, by the senses and the rest, by these seats, it deludes utterly — deludes in manifold ways — this desire, having covered, having screened over, knowledge, the embodied one, the one having a body.