It seems like you don't need a secondary living space but you do need a second office space. Maybe add some french doors, expand your office out of the corner, and add a comfy couch for when you do need it to double as a second living space. You don't need to use it as a formal living space just because it was built for that, use it however you need it.

There are a few things you might try:

--Move the upholstered chair from out of the office area and put it where the living room chair is, and rehome that one elsewhere or have the chairs facing each other from each side of the coffee table.

--With the big chair gone, can you flip the desk, screen, and all the normal office stuff so it's on the left wall and you don't have to see it when you come in?

--Think about a round glass coffee table to reduce some of the bulkiness of sofa, filing cabinets, large desk. The room needs a few lighter pieces.

Boa Coffee Table Walnut · More Info

--Your office furnishings look very high quality, so you probably want to keep them. However, can you rehome some of the filing cabinets to your husband's office if you don't use the filing cabinets daily. They take up a lot of real and visual space.

--No wall clock--good for work, not so good for relaxation in the living room. You already have the grandfather clock--no need for double reminders about time! (Any chance you can move the grandfather clock to a foyer or den?) That would really open up the space by removing some bulkiness and adding more open space.

Could you consider replacing the desk/cabinets with a more streamlined design? Maybe with a hutch for storage of desk top items. Especially if you can't shift them to the left as suggested above.

I would try to move as much of the visual clutter of the office around the corner where the paisley chair is now and out of the direct view as you come into the room. I'm not sure if your current desk can be reconfigured to make that work, especially if you want to keep your main desk area at the window (I know I would).

I would hang the artwork that is currently on the desk leaning on the wall; you have enough stuff that needs to be on your desk without those as well.

I see three monitors, is there any way to consolidate? (I know I'm treading on uncertain territory here since I know nothing about what you do or how you like to work.) The monitor nearest the sofa has a keyboard but there's no knee space for you to sit there comfortably, and it's too far away from the others to be a multiple monitor set-up. I can't imagine that you use it very often.

I agree with cawaps to minimize the visual clutter on the desk--pictures leaning, message on wall, etc. Meanwhile here are a couple combo offices