Can you post a picture from the other side as well?

Things I notice:

Not much room for chairs here because there would be no walking space really left

The rug isn't working with the sofa or the room really no rug might be better here or something non descript.

the TV stand is a bit too large, I would opt for a wall mounted one and wall mount the tv, or a very narrow one.

the curtains you know are wrong, but I am wondering if sea grass blinds or less is more effect would work better there

I'd put the rug under the couch, rather than the tv stand. Please show a picture of the other side of the room. We can't see if there's a doorway there as well.

Here are more pictures from different angles!
Right side of the windows theres a 62” opening that leads to the shoe area and main entrance door
On the other side is the “dining room” that I made into a mini play room, not planning on buying a formal dining table set
Thanks for all the help, we are debating between curtains and blinds, would love some curtains idea
I know the rug is a little too big but culturally we sit on the floor a lot and are just used to the full carpeted floor feel so we tend to want to cover most of the area.
Living room is a long rectangle 212”x126”, as the recliner can only sit 3 people I would love to find a way to add one or two accent chairs (advice on colors and type that would compliment the sofa?)
The area rug is still returnable so I would love ideas on that
The tv stand is non negotiable husband loves it too much and I dont know where we would put sound bar, google home etc without it
The two options that I see are:
1- 2 accent chairs by each window between the curtains and the lamp in the middle or smthg like that or maybe one of the two round side table in the middle and shift the shelving unit to the left and add a small area rug to make it look like a different space
2- Put one accent chair on each side of the sofa which would kind of cover the entire wall and move the shelving unit somewhere else or between the two windows
Hope this all makes more sense
Thanks again

The rug is too small not too big. It would be better as a square shape in this space.

Because there is so much dead space by the windows, i would move the tv down so it is centered to the whole wall rather than to the part of the wall that is between the door. side the sofa down, and put the rug more under the sofa than the tv stand. This will allow you to but a chair angled toward the tv under the window. I would put the black book shelf in the dining area on the back wall.

Is the dining room wider than the living room? If so, I'd think about switching out the rooms so the tv and couch aren't so close and give you more options for seating.