Hi---you have a lot going on in this space already, (2 wall colors, chair rail, red/ash tones) therefore, I suggest painting the brick an off white and painting the wall behind the shelves and the shelves the same color as the upper walls. Hope this is helpful. Good Luck!

HI -- I am going all out here --- First get rid of the chair rail /wainscoting . Paint the whole room one color including the brick fireplace and the bookcases and the walls the color same as your sofa (sectional ?) .Heat paint the fireplace screen and darken the mantel . Paint the French doors charcoal /dark grey ... Overcoat by Benjamin Moore paints or any grey charcoal of your choice . Paint the ceiling if needed a blue tinted white . Get a beautiful ethnic rug with rich colors and some pillows along the same color ways as the rug . Get rid of the valance and just have textured fabric drapes hung from ceiling height .

Your hardwood floor is very pretty, but you don't want to make things too busy with multiple shades of wood and paint. I would remove the chair rail and wallpaper. Any shelves should match your kitchen cabinets or be painted to match (a new) wall color. Remove the mantle and change or paint the fireplace doors. If you are adding shelving next to fireplace, allow space for the TV to be mounted on one side. Use a retractable swivel arm so you can move it back against the wall, or pull out and position for viewing. I'm attaching a photo to show you how we did that in a recent remodel.

The book shelve should be exact same color as light plane side walls. It will give a feel that a part of white wall is come out from the middle brick work.

Thank you for the comments, we will remove the chair rail and paint the fireplace with brick anew and we will get new furniture we are thinking of a sofa or sectional.
I attached a image of a layout I did with an app I found it very helpful, the only thing is my style is more transitional but we don't want much color, I know we are more traditional on that part or plain in color.

Please give your opinion since I am still like to have the bookshelves white like the fireplace but I am concern about the windows trim is in wood and the rest of the kitchen is like the same color wood as the floors.

Do you think the withe color will be a good option?

Measure space and furniture carefully so that you have enough room to access shelving and cupboards. If you put the TV over the fireplace, rotate the sectional to face fireplace and place table behind it. Put just one more chair in the seating area. If your shelves aren't going to match a wood tone, match the trim around the patio door. Add molding around bottom of room and paint it the same color to tie everything together. Run the shelving up to the ceiling, to match the height of the chimney.