Would you please post a couple more pics of the area? It’s hard to determine exactly what it is or looks like from the one pic. From the stuff on the floor it looks like it’s close to entry & bags just dropped. That framed ’doorway’ looks like it’s calling for a mirror or art - something needing to be framed.

What kind of functional furniture do you need in your living room? More storage - place shelves there, a shoe rack, a small table to toss keys and a bag? Can you show the rest of the space? Is there every sunlight here? If so, I'd get a larger floor plant to place in front of the door.

Can you paint the door the same as the wall color and remove or tone down the trim? the more it looks like just another wall, the easier it will be to deal with

We need to see the whole space and also is this your owned place or a rental.

Why not the desk right in front of the fake door frame? All the desk things would camouflage but agree w/o more information and pictures farther back of the entire space we don't have enough to go on.

Would be helpful if you posted photos of the entire space.

Please post more pictures showing the entire surrounding area as well.

Also, the thermostat being on a door, I'm presuming that door doesn't open?

So that is not a door? Spend the money on removing the frame and making it a continuous wall. That is a must.

I would not concentrate on just the wall area by door. I would address what decor and workspace furniture is needed for the entire wall.

I would add tall bookshelves to the entire wall, with a built-in desktop that can be lowered and then stowed when not working.

Leave an open shelf to reach the thermostat.

Here is how to post a Design Dilemma to get the best results. You need to show the whole space—all four sides of an entire space—even if it’s about one specific Dilemma. Commenters need to see doorways, windows, closets, finishes throughtout the space to make informed suggestions.

State right at the beginning what the room will be used for and who will use it. State the non-negotiables at the beginning, what has to be kept. Give some idea of the budget. And provide approximate measurements

https://www.houzz.com/discussions/6417709/unofficial-design-dilemma-boot-camp

Keep in mind that you're inviting some design pros and people with a design eye into your home via photos. If they walked into your actual space, they would take in all of it: all four sides, doorways, floors, windows, ceiling, built-in fixtures, lighting, trim--the "givens"--then the features that can be changed--furnishings, paint, art, rugs, decor items, etc. It's all one first impression. Same thing with photos. That's why it's important to provide well lit photos of the entire space, taken from all sides of a room regardless of the size of your problem.

There's been no reply on your part so I'm presuming the door is non functional. I'd remove the door frame and paint the door the same colour as the wall.

To me it would be lovely if you had a bockcase made that just fit into the door frame and painted it the same color as the frame. Just a wacco idea!.

After the faux door is painted the same color as the wall, put up artwork and a storage bench below.

I will wait for some more info . Or maybe another poster that left the building. Seems to be more common now for some reason.