I tried out some options, some suggested by you all, and am curious what you think. I would like to keep the Stuart Swan chairs but probably have to let go of the ottoman if I move them to the living room. And then we may do a sofa with upholstered ottoman in the dining room for TV watching. Or a sectional with a left arm chaise (chaise closest to DR entrance, I mean; but that would make the entrance to the room a little less open). Thoughts? Option A, couch at window and chairs under piano window. Imagine a slim table between the chairs, a square coffee table and poufs opposite the chairs. Side table and lamp where pharmacy lamp is. Rug under chair & sofa legs. Bookcase goes. Option B (below): Couch under the piano window. Imagine rug under sofa legs and chair legs, slim table between chairs or C table on left one and a square coffee table with poufs opposite chairs or couch. Matching side tables and lamps on couch ends. Slim pharmacy lamp on left chair (if no side table). Bookcase goes. Out of option A & B - do you like either? Or do you prefer my earlier post with the two chairs like so, let's call it option C:

Well! If you have another room for the TV than that is your answer. Then, you can move the sofa to that wall and add two small club chairs across from it. If you go the chair route, get ones that swivel as you have the window seat in one direction and the dining table in the other. Easy to swivel and converse! I am not a fan of the TV being in the living room if there is another place that it can go. I wouldn't rush to take down the half wall. You will need someone competent to match your existing hardwood. Your kitchen looks like a nice size. Is there a table in there? Or can bar stool be put on that side if you replace the counter? It looks like it is a different material than your counters anyway so you can find a material similar to what is now there. ETA: When you do look to buy furniture, look that furniture scaled for small spaces/apartments. It's sometimes hard to judge in the store so take a tape measure with you.

Good idea to add doors to converted garage and use it as an office/play room. If you use the sectional in the original living rm., can you remove the middle seat area to make it shorter? Then put it in front of the living rm window and your t.v. and console opposite on wall next to pantry bump out. There will be more walking room to office/playrm. Unfortunate your sectional ends can't be reversed for this reason. Or keep current sectional in office and put new furniture in original living area that will fit the space, such as a shorter sofa under the window and two chairs. Or shorter sofa to make an entrance corridor along front door area and chairs in front of window. Add taller bookcase to bump out area and another chair angled along back of kitchen wall next to t.v. console.

COATS: I see on the floor plan that there is a closet in the office(?) If so, you could put a door in from the living room/dining room side and have that be your coat closet. Then you could get a shoe cabinet like this one https://www.ikea.com/us/en/p/hemnes-shoe-cabinet-with-2-compartments-dark-gray-stained-20381763/ from IKEA to have by the front door. Otherwise I’d look at getting a hall tree/cabinet like the previous poster mentioned. Floor plan: see pics. If it works to put the door in for coats then put the dining hutch on the wall opposite the dining table. And possibly a couple of display cabinets to go behind the table. If not, put the hutch behind the table and put the hall tree wall opposite the dining table. Recessed lights: I laughed that you laughed about recessed lighting. They are extremely common in US no matter what the style. I love the ones you found and would definitely go in that direction. Floor: Love the floor. Would have area rugs to define living and dining or at least the living space. Bay Window: would need to see a picture. I think there may be some other options. I would be nice to be able to accentuate it. (See pic) Interior Design: I like where you are headed. Crown Molding: YES. Just do a little research on how wide. You don’t want to skimp. It will make your ceiling feel taller. I would paint it white like the baseboards.