I would get a light colored low key rug bigger than the one in the photo. Put the TV where the sofa is now, and the sofa opposite that with 2 end tables. A swivel chair for near the back wall, and maybe an accent guest chair on the side with the tv near the dining room. The arched entry to the dining room limits how "sleek and minimal'' you can be, but you certainly don't have to be old fashioned or cluttered. Everything sen below is from All Modern with other colors available

I like the overall feel of the space I agree drapes and much fuller would be nice .I do not like the wall color or the art if getting rid of the gray is the point then get some art with a bit of green it it and something you love to look at . The light does nothing for thstspace the drum shade is okay better than wht you have Ilove this color for walls it is a total neutral for me I cut it 50% if a hint of colar is all you need and before choosing the wall color Get the art and drapes in a color you love then match the paint to the drpe s. I like faux silk for drapes at lest 2.5 times the width of the rod for sure. I then woudl choose fewer pillows in colors from the new art , just think if you need to move pillows to sit you have too many. A rug would be agreat addition again in a color from the art so maybe just a darker shade of a color from ther e.

Your real estate paperwork should have blueprints and measurements of all the rooms, no? Your furniture seems too big for the space you have. Ideally, you could float your sofa where the chairs are, float the chairs to face the sofa, and move the TV to left of fireplace. However, you don't really have a way to get through the living room. Any chance you could return the sofa for two more chairs? This is what's often advised in such small spaces. Paint the entire space a warm white that works with the floors. Get your blues and mustard in there with art work and rugs. You've already made a start. Jan offered a good suggestion to swap the middle space--current dining room--for living room. If you have an attractive eating space in the kitchen--do you?--then a beautiful round table or a long retangular table with casual but upholstered armchairs (less formal than these) could be very inviting as you walk in. Then no problem with walkways. Do a Google search for "switch living room and dining room." Lots of great photos as examples and how to do it. Here's a photo of a front door that opens into dining space. The chest and mirror by the door gives the sense of an entryway along with the hooks.

It looks like maybe you are not in the US? BM Edgecomb gray is a light warm gray that should look good with your tile and plays well with others if you have access to it.