Hi Annabelle, I'm Neha. I created a mock up of your room and came up with the following layout. Since its a small place I wouldn't recommend a sectional. Maybe a 3 seater sofa and two swivel chairs would work well. The height at which the TV right now might not be very comfortable. I recommend you mount the TV to the wall next to the fireplace. Place two ottomans near the fireplace for extra seating. Since I was not very clear on the nook behind the sofa, I've left that as space for storage. It would be best to keep all your furniture compact. You can also place a table and chair and make it a working/reading space. I could help you with more layouts and furniture suggestions if required.

It looks like you have a good amount of space there. i would suggest an L shaped sectional - measured very well for the space. Put the sectional facing the fireplace. The sectional will be floating, so use a sofa table behind sectional to anchor it; and this will also provide a better view of back of sofa upon entry into space. And mount tv over fireplace on this mount. https://www.dynamicmounting.com/product/down-and-out-manual-mount/ This is a mount that will lower tv to eye level for comfortable viewing. There is also a motorized option.

Also, the fireplace is being prepped to be painted white! The mantel was recently removed, since we are going to place a wooden beam over it.

nice after shot. beautiful floors. honestly, I'd get a diff sofa. that one just doesn't fit the style or the size, of the home. remember w/area rugs, it shouldn't look like a 'floating carpet getting ready to go for a ride"! it needs to be anchored. a coffee table, push it further under the sofa, put some chairs in the corners, etc. are those drapes needed in the nook area? they close it off a bit. you could do a little seating area w/plants or build some simple built in benches this type of look or, remove the drapes, try and find a small loveseat that fits in that nook and use it for extra seating