Another vote for window film. Let’s in light but not the peeping eyes

Hunter Douglas makes a couple different shade product lines that come in co-ordinating fabrics/colors in both a horizontal and vertical version. These vertical options are not going to be the traditional PVC clanky, vertical blinds most are used to. You can get soft shades like Duette® Honeycombs, Skyline® Gliding Panels, or Luminette® Privacy Sheers. All these vertical products come in a horizontal version as well. Check out more at Hunter Douglas.

First off you have beautiful home and congratulation on your new home. I'd suggest going to the floor if you're going to go with curtains on these window and if you're okay with going above the picture rail i'd suggest that. Going above the rail will just add height to your room. 1/4'' is going to be too narrow to do an inside mount. If you like the idea of having some of your trim show you can always mount on your trim, but just don't cover it all. Honeycomb and roller shades would be good pairing options with curtains. A roller shade will project out farther than a honeycomb shade.... just something to consider. If you're open to suggestions on an alternative option consider an Illusion shade. They have a modern look and give you versatility with light and privacy. The illusion shades are beautiful on their own or look nice with panels as well.

Looking at your setup from that second angle suggests you’d have proper clearance on the left but now I wonder about the right side The space on the right is limited by the protruding fireplace “trim” (the mini “hood” above the fireplace opening and the detail below the opening). To see what might work you could purchase a 96” or 104” drapery panel, (whatever appropriate length) hold it up at height rod would be, and see if it hangs ok. Does it look squished, left to right by the fireplace? Does it hang freely? A heavier fabric panel will take up more soace, especially if it’s lined. Maybe a cotton canvas but no lining, or a blackout panel would fit. To help you decide about adequate space, consider the function of the slider. Do you open it a lot? Is that outdoor space a spot you use all the time, or does the door stay primarily closed and youre not going theough that door much. The right panel could hang partially over the door handle (door seldom opened) or it could hang so it fuly clears the door handle (use door all the time). Alternatively, you could mount a shade over the arched window that is long enogh to cover the sliders when shade is let down. (Prob requires a custom made at this length). Whether a shade or drapery, the slider door handle and limited width and height of space will inform your decision as Im sure you already know. Either woud work, but neither are ”perfect”. But perfect is seldom needed. The pros have great advice; maybe they‘ll weigh in