The rug you have chosen will compete with the bedding. I would suggest a solid in a blue or gray is you prefer. With that said, it appears to be a small room so the majority of the rug is hidden by the bed. I would opt for two smaller rugs on either side of the bed.

Yes, I’d go up to an 8x10. Go to a site like Rugs USA — they have a feature for uploading your picture and doing a mock-up. It’ll give you an idea of how various sizes will look.

wow, you have been busy. its looking great and 100% agree that the new nightstand and moving the tall dresser away from the sleeping area made such a big difference. the art above the bed is great too. the bench below the window in the office area also made a huge difference. as for the color change for the dressers, I wonder if white will wash out the room a bit as you have a lot of light colors like the wall color and carpet. i still like the idea of using the color of the blue console in the office on other pieces. a darker or brighter color will pop a bit more against the wall color... another idea to bring some more pattern or texture in the room is to use wallpaper on the drawer fronts and paint the rest of the piece, maybe in this case you could paint the piece white.

What about one bigger rug? I think for your bedroom, it would look better and more cohesive: https://www.rugsusa.com/rugsusa/rugs/rugs-usa-handwoven-chaste/Natural/200HMMT01A-P.html