the first option is not old fashionable..it's traditional..a pretty classic one. it will be much more in line with your tastes as you explain them, than stacked stone

you don't need to prolong the wall visually there-and the more massive fireplace will partially obscure the window..they're just too close

I'd go with a first option..or variation of it..then I'd balance the window with an art over the fireplace that you love. The fireplace will also be lighter and read more natural.

I'd consider window treatment as well. Do you need privacy there, light control? Maybe you can go for more stationary treatment, like one curtain pulled to the side. or maybe a stationary cornice..same color as the wall whatever it will be..will make window look shorter, more framed. In any case requires careful consideration.

you'll have time to figure it out when your new freplace will be in; but start looking at the pics etc.

the window seems a bit too tall..any reason for that? how does it look from exterior? do you need more light in the room? It dwafs the door a bit

I know there are tricks to make a window seem shorter than it is..if that's what you'll decide to do..even with moldings..I don't remember enough about it right now though

maybe you'll be interested in this blog

https://laurelberninteriors.com/

(her taste is new traditional..she writes a lot about everything including windows, fireplaces, etc, and is an honest and amusing writer too)

or in reading this author

https://www.amazon.com/gp/product/0307408655/ref=oh_aui_detailpage_o08_s00?ie=UTF8&psc=1

he is famous for his work of combining traditional with modern touches. obviously he's opionated about some stuff because he explains his own style; but lots to learn and admire anyway