Pics of the space would also be helpful. How do you plan to use the LR? Do you need a tv in there? Another dining area? Two seating areas?

I would put a half wall right there where you walk in to give some type of definition of a entrance that separate from the rest of the living room you could do a beautiful tile on the floor if you have wood floors so that when you step in you don't have to worry about stepping right onto the wood floors in bad weather

So we would want to put a tv in the room. Outside of that, we don’t have any other major requirements. We don’t want it to be a tv room. We really want it to be a nice cozy space for light entertainment and family time. I don’t really have pictures of the space because it’s a complete gut. It’s pretty much

How many will be gathered here to watch TV? What ages? How many when you entertain?

You can create walking way-entry imitation by layout. Some kind of (no scale)

"nice cozy space for light entertainment and family time"

What does that mean or look like? What other areas of the house do you entertain in and how would this space be different? What family time activities? Knowing these answers would help generate some more ideas.

I would place the sofa facing the large open wall for tv/ entertainment. Behind the sofa I would put a dining table. Split the formal room with Sofa and Dining. Or put a wine Bar and barware storage in there. Enjoy the open room and the flow from drinks to dinner.

Thank you for the responses! And that walkway idea is awesome. Great questions too.
We have a family of 6 but our larger extended family is always over so we want space for about 10 people if possible. Mostly young children (under 12) and adults.
We also have friends over often (late 20s early 30s) so the space would double as a game night/grab a beer or wine space.
Family time would include reading, board games, occasional movies, conversations. We were def considering a bookshelf in there if possible along with floor seating for the younger kids.
We don’t need dining in the room because we do have space near the kitchen for a dedicated 10 person dining table.
I think conversation and comfort is key for us in the space as we do have a tv room and play room on the second floor.
Most of the inspiration I have seen online features longer skinnier rooms and less square rooms like we have here. Makes it harder for us to create zones in the space.
Again thank you for the suggestions and responses!