What's wrong with you you have? Move the sofa forward and get a narrow sofa table/console to put behind it, preferably with a lamp on it. If you need a floor plug, get one installed. Then pull those chairs out from the corner and let them flank the fireplace. You can then get two normal size club chairs (not those monstrosities on steroids) and put them at right angle to the sofa.

It looks like you have room for the TV to lay flat against the wall with the big window. I would keep the sofa where it is on the long wall, put an enclosed console table under the TV, flat on the wall next to the window, and put a long upholstered bench under the large window. It can be used for seating when needed, with storage underneath. Or try your yellow chair from the corner in front of the window with room for a second chair. You need a floor lamp on the far side of the sofa and an end table and table lamp on the other end. Turn your rug so it lays the same direction as your sofa. Remove the ottoman and all the extra small pieces of furniture. Remove the curtains and rod. Put the same roman shades on your front windows that you have on the smaller windows. Put a few sturdy hooks on the wall behind the door for function.

Try a chaise sofa and one chair in the TV room so you have room for kids play area. In the living room use a 3-seat sofa and two chairs grouped around a coffee table and use floor lamp flanking the sofa.

Sheer curtains for the windows. Layout will be tricky because of the FP and the heater/ radiator. I think we’re looking at a couch on the wall with that radiator. Maybe a console behind it to block the box. Or a couch lengthwise. Facing the door. A rug, coffee table, maybe a bench or some chairs. Start with what you can. Very charming home. Love it