I think the comfortable layout for your tv and furniture is on the fireplace wall. If you want a large tv, I would remove the built in and reconfigure your mantle to be asymmetric and longer than the fireplace box. Then the tv could be centered on the entire wall. You could also finish the hardwood (it’s real wood!) and maintain the larger kitchen dining space. I couldn’t find a great example, here’s the basic idea:

Denise’s idea is clever and would work, but it has the unfortunate effect of obscuring the fireplace. Jeannie’s fireplace-focused idea resolves that problem, gets rid of the awkward niche and avoids the need to build a wall. Using a frame TV makes sense, too. Here’s an article about the various models:

https://www.popularmechanics.com/technology/g38190182/best-frame-tvs/

You have beautiful wood floors. Please, please, please do not put crappy plastic (aka “luxury” vinyl!) over them. Especially do not put a. type of plastic “wood” in a color not found in nature.
I am looking for a new home and I keep finding nice homes that have been ruined with LVP and have to try to calculate how much it will cost to get rid of that crap and then the guilt of putting all in a landfill. Ugh

With that corner fireplace a built in will always look awkward. I would get a nice wood credenza and mount the tv over it.

A console table behind the sofa might help define the spaces and potentially add some storage.

I would definitely do a nice long console. The tv could stay offset to the living room side and you could add some nice art to the left or a couple of floating shelves or even a big plant.

Behind the sofas, you could do consoles there as well for additional storage.

You may want to add some drapes for some texture and warmth.

Good luck!