The choices are 1) start the stairs one tread farther out which would raise the landing one riser and pull the upper stair back one tread to eliminate the chamfered ceiling or 2) pull the closet out a foot to hide the chamfer or 3) leave it as it is. I vote for #3 because when the stringer trim is installed it will look fine. This is a very common detail used to avoid wasting floor space under a stair. You've seen it a hundred times and not noticed it. It just looks a little odd in the rough. The open stair is a poor substitute because of the unusable space created under it the risk to children and the elderly and the difficulty of getting a permit in most jurisdictions for open risers that allow the passage of a 4 inch diameter sphere. Why aren't you asking your architect/designer?

Well, #1, white vinyl divided pane windows do not go with that interior. I'd swap those out or figure out some way to minimize their intrusion because they're going to stick out even more if you change the color of the walls to something other than white. You have a lot of really good options with that living room design. At minimum, I'd pick a slightly different shade for the wall next to the stair well and the stair well itself, so it appears as a different dimension. With the 'beamed' ceiling, there should be some subtle transition from the 'wall' to 'ceiling' area color wise. Otherwise the beams look like they're just floating or tacked on (which they probably are, but as long as they're there, make them look like they're actually part of the ceiling rather than something stuck on the wall) After a second look, another option with that nice high ceiling is to do the walls a slightly darker shade than the ceiling, then replace those wall sconces with something that directs light at the ceiling. This will give the whole room a nice 'glow from above' all with indirect light. and make the ceiling feel even higher.

The grey console is already gone ✔️ And the door with the window is the laundry room down a short hall way - the way both doors open does not currently allow for storage in the space. I didn’t think of putting the back of the couch to the kitchen - we can try that. I always just felt more included while cooking in the living room if everyone’s backs weren’t to me while they sat on the couch. Even though the chairs are there, most people sit on the couch.

You could put it in the wall (under the blue electrical box} on the first step or in the door. All the homes I know or lived in the basement door opens to the first step down. . The height will be close to the same what ever way you go. . If a cat is able to walk up and down steps then their will be no problem for the cat to get through the cat hole. We always had the cat hole in the door, we didn't have a wall next to the steps that would look good with a hole in it. Not a bad idea putting it in the laundry room like you show it. Our cat holes were shaped in a cat's head.