It looks like a choice between seating or landscaping, but not both.

Not sure what you are calling "the bushy grass" but if it is what is along the side of house, I think it's not going to make a difference.

We have about 7.5 feet between the fence and the bushes and 60 feet from fence to fence.

The tall bushy grass is tough for our 25 pound dog to walk/run through.

We are hoping to get some design ideas to help make the yard more a more natural place to hang out. We are looking into a defined stone pathway from our front door. We are looking to cover the AC unit and trying to figure out what to do with the rest.

Take out the -can't think of the name- side bushes and then put all grass on the side for your dog, with new plantings around the AC unit (you have to be sure air intake isn't affected). Do you mean seating in the front? Remove the current plantings which aren't all that attractive or organized, add a stone walkway (not solid, the steps kind), decide on your seating and then plant ... a few things.

I don't know what grows well in your zone and I'm not the best at knowing plant names, although I think I've paid for a zillion landscaped yards over the years. Would you consider rock front - gravel is not the right word - with bluestone steps in the front. Then maybe potted trees/shrubs? Add small plantings or pots of color?

I don't know how to do those photoshopping things to your photos.

I would think you are in the Northeast? Please post your nearest city. I would remove the groundcover and replace with fescue sod. The hedge, boxwood?, looks in good shape and very pretty, so although I am not normally a fan of trimmed hedges, I think yours looks nice. I would remove the red shrubs, nadina?, and replace with a paver or stone path. Put a seating area in front of the window and seasonal annuals in the planting area to the left of the red shrubs. You might could move some of the red shrubs around the lollypop hollies.

ETA: I would probably take out the lollypops, but if it was mine, I would want to do a little at a time. The grass, path, and seating would come first, then tweak.

Thanks for the suggestions. We are in Dallas, TX if that helps with the grass recommendations.

OP I know your neighborhood well. Do you have HOA restrictions? Aren't all the yards landscaped the same?

Some have grass and others have the ground cover bushy/tall stuff that our dog struggles with.

Show a picture, straight on, of the house from the front.

I still don't know what you are calling "tall, bushy grass." Where is it?

Yes, what is "bushy" grass?. Keep in mind that if you replace groundcovers with grass, you'll have to cut it.

I don’t see tall bushy grass either . I also am having difficulty getting oreiented as to where the spaces are so maybe some photos to show the whole space or better yet a plan to scale. I am wondering wether the dog needs to use this space as a toilet or just getting from the walk to the entry? It looks like you are on a corner lot so not sure where you are thinking about the seating.

OP is calling the green groundcover tall bushy grass. I can see that, but I guess I am not a "pro".

I am wondering why the dog has an issue walking there IMO it looks quite healthy and pretty close to the ground.

Might be a pretty small dog :-) That groundcover looks to be quite dense and several inches thick.

Ours couldn't walk in that.

Looks like a great spot to hang out with your dog! Narrow urban yards can be challenging, but careful planning can maximize a small space. See photos of an urban garden in Chicago here. Remove existing shrubs to create space for a pathway that connects the front and side yard. Establish a focal point at the corner, similar to the photo here. The focal point can be a planter, fountain, garden art or statue that is visible from the front and side yards. Your stone pathway can be laid out from the front porch to the side of the house, ending with a petite patio area with a bench or a couple of chairs. Seating could also be added with a bench that provides handy storage for cushions, dog toys, and a water bowl like these. Finish the front with ground cover between the stones as shown here.

He would for certain not poop or pee in that groundcover. It looks like eunonymus fortunei, wintercreeper, which should be banned.