Must that yellowy sideboard be in the room?

Where are the window and theentrance from the corridor or hall? And a very important thing. where is the north side? Will the living room be seperated from the corridor by the door or not?

the window is the opening near the yellow shelf thingy. And there are two entry ways, the one opposite of the yellow thingy is the one leading to a hall way. The other one leads to the dining room. The yellow thing is a stand-in for a shelfing unit. Just a filler right now. We won't actually get something that look like that. Just found the first thing online that approximates the size of the final thing we want.

Have you tried floating the sofa centered on the fireplace; place one armchair on each side creating a u shaped arrangement around the coffee table. Remove the extra chair, or leave it in the back corner if you really want it. This leaves room for traffic to flow easily behind your conversation area as opposed to through it. Place the tv on a swivel mounting.

If I've misjudged the space, then I think I would choose the sectional arrangement.