I think it's a bit tough to give you advice because how you arrange your home depends so much on the lifestyle you lead. That said, I've offered some broad tips to aid in your redesign.

Use light furniture with pads, then it can be moved around to make space. You can push the table against the wall and then pull it back when you're entertaining people. This provides some versatility to your space and lets you change your arrangement quickly to suit your needs.

Try to find storage solutions that are suspended above the ground. Having a cabinet around the television can provide with a nice dark contrast and additional storage space. Anything high up can be long term storage; all the air space above 7 ft is mostly wasted (Unless you're legendary basketball player Shaq).

Experiment! Spend an evening moving furniture around and see how you feel about it! There are many factors about your situation that are hard to consider. Do you watch TV during the day? (if so, moving it across from the window will give you glare!) Is eating together a large part of your family life? What do you see outside of your window? How late do you stay up? etc.

Finally, do some critical analysis! What parts of the living room do you spend the most time in? why? Is that chair in the back used often or does it just take up room? Do you spend a lot of time playing with your child and their toys in the little play area against the north(assuming north is up) wall? You can setup a phone to take a timelapse over the course of a day and see exactly what you use your room for and how you enjoy spending your time.

I hope this helps and feel free to ask me any more questions!

P.S. It seems like your family likes the colour green; I would definitely recommend committing to it and adding some colour to your space! It can be as extreme as painting an entire wall or just getting a new cover for your futon!

Second layout is good, which is separated into 2 areas TV, sofa and desk

Maybe on wall where tv is now you can build a tv/storage piece, Ikea has these kind of pieces. I would anchor the sofa on the wall facing tv (where I think it is now, facing tv - but move it back to the wall).

Looking at your photos, I would move the dining table over to where your child's small table and stool is. If your kitchen entrance is near that end of the room, this should work if you are eating meals at this table. Push the short end up against the long wall if need be. Try the tall cabinet where the coatrack is. Push the TV stand along towards the corner and angle JUST the TV, (not the stand) towards the sofa. Place the cream chair to the right of the sofa facing the angled TV. Depending on the depth you have, I'm wondering if there is enough room behind the sofa to have one of your Ikea Kallax units, I think that's what you have by the child's tent? The tent would be over by the window. Move your large floor lamp between the dining table and the cream chair. This doesn't account for the storage pieces you have by the tent, I can't quite see what they are or how/where you need to use those stored items. But it changes the layout for the larger pieces. Do you have any other closets other than the bedrooms?

A credenza with closed storage under your TV would be useful. Not too high, your TV should be eye level for comfort. Is there anything in the box supporting the TV or is it just to add height?

My nephew had twins in a very small apt., their toys were kept in their bedroom. They were allowed a few toys to come into the small living room area. If they wanted a different selection, they returned what they had to the bedroom. A basket of some of their reading/picture books were kept in the LR. It was amazing and a joy to see how quickly they learned this routine of swapping out toys from room to room.