You are going to want more than 32" for the toilet. 36" is standard (and perhaps even code in some areas???? Not here in Maine but I heard people saying that on other forums...) We have 34" and it feels fine but I dont think I'd want to go much tighter. You could solve that simply by flipping the closet and shower. So, have your shower -rotated 90 degrees and witha glass end wall- at the end of the tub (which is a nice setup you can see in many bathrooms, the tub deck can actually protrude under the shower glass wall and be a ledge or seat in the shower). Then the passageway moves to the left, and you can steal a bit of space from the other closet for the toilet. Either that of have a shorter vanity. 48" isn't a size I'd fight for. It's too short for a double vanity, really (unless you're using one of the new two-faucet 'trough" styles) so why not go down to 42" and have a better toilet area? For resale, though, you should consider a double vanity. Some people I guess expert truly huge ones, like at least 5+' long. But you CAN get smaller ones, Ikea has some great ones for tight spaces. But if you're not selling anytime soon, do what YOU like!! (But I still think you'll want more toilet space...)

My parents house is like that, but there’s a wall with a wide doorway into the area with the vanity, so it’s open but also easy to close off by just putting a curtain rail up. It’s also oriented to the room such that if you only use enough light at the vanity to wash your hands for a midnight potty run, it really isn’t enough to bother someone in the bed if you place the bed sensibly. Getting ready in the morning would be trickier if you needed to do makeup and so on so needed proper lighting, so that’s where a screen or a curtain would come in.

Best case scenario exactly what airqual says - it's a sealant/caulking issue - you can recaulk the entire area and deal with the mold. If you have to tear out the tile work it gets more expensive quite a bit. I don't know what to advise with plaster walls - don't have those around here but I still think you probably have no choice but open up the wall to let it dry and get mold out. One thing I might try - if you can get the baseboards off the wall you could cut a hole in the wall at the lower level and see what is in the wall cavity perhaps this way (depending how high your trim goes, remember there is a baseplate). You could then patch with drywall as it's going to be hidden. but if you're not the DIY type at all, probably best to just call someone in. You have to pull the carpet out no matter what and padding and get everything away from that wall. If you do that and can identify which area looks "wettest" then that would give a clue where to start looking and I'd do that before anything else. Give servpro or other type business a call to come out and see the issue. They'll give you an estimate, I have no idea what they charge but they have all kinds of mold abatement sprays that will kill the stuff without having to totally destroy the wall. Sorry can't give you more help - I'm sure it's incredibly disappointing and stressful.

Sharon thank you for your input, I was thinking of maybe some kind of wallpaper behind vanity mirrors, its about 7 feet wide space, with blush peonies or something?