I would move the tv over the fireplace and move the chairs to that wall. What is behind the couch?

Another wall office area to the right

hard to tell how this room connects to others from the pics, but if it works--i would move tv to over fireplace and move sofa to wall where tv is now. add a coffee table to pull the seating arrangement (sofa and two chairs) together. i'd also move your curtain rods up to just below the ceiling and get some panels that are longer (to the floor). This will make your small room seem taller.

Don't put your TV over the fireplace unless you want to end up with chronic head and neck pain from having your head tilted back at an unnatural angle. TVs need to be at eye level.

sourcc: I took these photos photos standing in our kitchen entering into family area our layout is similar to a backwards L shape, we built 5 years ago and this room has been the most difficult because of the windows and lack of wall space

Smaller furniture. I'd bring your dimensions tons furniture store to assist in layout and furniture sizes.

The room is too small for a functional sectional. Your present arrangement is your best. How many adults need to watch tv? You can use floor pillows for young folks.

You should put chairs on either side of the fireplace, get a big square coffee table. And maybe a bigger cabinet for the tv, feel like the scale is wrong compared to the fireplace wall. You should maybe do some roman blinds instead of the curtains and get some throw pillows that pick up the same colors in the blinds.

Sorry not put chairs, I meant move your armchairs on either side of your fireplace. Definitely lose the curtains, and move the lamp.

If you could find an armoir or cabinet that the TV could fit into I would put that on the wall behind your sofa. You could then use the space where the TV is now for the sofa and use some of the other ideas expressed here. Turn your rug lengthwise maybe. The cabinet should be a nice transitional piece from the kitchen to the family room

put the sofa backwards . why leave that space between wall and back of sofa ?

boomers775 suggestion might be worth trying. If your TV cabinet is too deep, consider buying another one that fits the space and clears the door trim.