Something to consider...aisle size. Will you be using a wheelbarrow at all? If so will the one you have fit through a 2.5 aisle? My aisles are 3 feet which is just enough room to maneuver my wheelbarrow...but then again I don't have the same space constraints you have with walls and such. I smothered the grass in my aisles with newspaper/cardboard, then covered it with weedcloth then mulch. I like the mulch...its attractive and soft under my feet as I work. There are several other ways to do aisles too depending on where you are and what you like...pavers, gravel, pine needles, grass...etc

The first thing that strikes me is that your curtain rod is too short which is why you have to push the curtains to the side which kills the vibe in this room. Get longer rods and linen-type curtains that are fairly similar to the wall color which will give the room warmth without looking busy. Please make sure that your area rug is as large as possible because that will make this room look fabulous. Little bitty rugs do not. I would choose an Oriental rug in warm colors because it will hide little accidents, at least until you can address them. I would definitely get a sofa, so great for cuddling with your husband and kids. I would place it in front of the window for good lighting for reading but also because it gives you the best sight lines into other areas of your home. Instead of a coffee table consider a large ottoman with a lid so that you have plenty of storage space. Please don't buy a brown or black leather couch. They look dated and are so difficult to decorate around. Try beige or caramel, with two chairs in contrasting colors, perhaps a nice blue or green, colors that will be in the carpet hopefully. You can also use the carpet colors to choose pillows for your soft furniture. Find some nice pictures to put on the walls, a large green plant, a bookcase or two (books are a must in a room) and side tables for lamps. By now your room will look gorgeous and be pretty well furnished and, most important of all, will be comfortable and fun to be in.

I had imagined we would lean art on the ledge going across. There will be two black sconces installed (you can see the holes for them). The ledge across is kinda odd and I guess that’s what we’re trying to solve for - to make it look more deliberate, since there is no longer a pass thru. Is there a play to hang art in FRONT of the ledge as well as some leaving? To create some dimension and kinda cover the ledge?

What do you need to store? That would help determine what type of piece you could add. Adding two more panels to each window would be a good idea. They aren't quite full enough as is. I like this panel system from IKEA for sliders. https://www.ikea.com/us/en/p/yrla-panel-curtain-white-white-20378770/