I think I'd prefer to have the TV on the short wall that is to the left of the window when facing the window. Then I'd put a sectional under the window wrapping around where the stereo is now. A single chair, be it a recliner or whatever, could be placed where the TV is now.

What are the dimensions of the space? Including Dining area. The table and chairs in photo are so crammed into the space, that the whole set will almost have to be moved to seat 6 people. Do you need a table for 6? I would also suggest no sectional. That's all you going to get in the area. A sofa and 2 chairs will be much better. If you have a TV, how big is it and do you have a console for it yet?

Here are some color combinations for you.

I would agree the sections is too big for the space, a smaller sofa and 2 chairs would be better suited for the space. The rendering above looks great

Be sure to allow room for tables and lamps so that you do not have to use overhead lighting.

They do not have to be all the same color, in fact different is better. At least in pattern. I would keep the same shades like photo #1 you liked. For the chair in the corner you could do an accent color such as blue, orange, yellow> Then tie that color to the rug.

You could do gray sofa, 2 chairs in the pattern and 1 chair in solid. Or you could do all 3 different. I would suggest at least 2 of the chairs the same and the 3rd a solid.