Here are the pictures with sofa facing fireplace.

It all depends on what you prefer to sit on to watch TV.

Either arrangement is fine, but I'd try bringing the wing chair up to face the opposite wall instead of angling it by the fireplace. Or you might keep it angled, but just pull it away from the fireplace a bit. It seems to unbalance the room.

The pastel art in an all gray and white room doesn't add much punch, so I'd pull the coral out of the art for accessories.

I'm not a fan of curtains on bay windows. I'd do some kind of simple shade in a natural fabric or woven wood.

Thank you grover! It looks really nice. I like this kind of shades, but I'm not sure how much privacy they provide... I want complete privacy because the bay window faces the street.

If I go with this shade, should I have the same in the dining room?

I assume you don't need privacy on the dining room windows. Do you need light control there, and is that window a bay also, or a sliding door? Your window coverings should coordinate, but they don't have to be the same.

Look for blackout shades or shades with an option for a blackout lining.

The problem with curtains on that bay is that if you plan to close them, they need to be 2 1/2 - 3 times the width of the window. That's a lot of curtain and the stack will eat up most of your wall.

The dining room window is just a regular window. It's south facing and it definitely needs light/heat control. I love to have privacy, so closing all the blinds is the first think I do before turning on the lights.

What I was thinking for both windows, was window blinds and curtains on the sides (just to dress the windows up). I like blinds because I can move them up and down, I can see what's going on outdoors, and still get much privacy. But yes, that's a lot of curtain stack...

Woven woods can be lined for privacy. Smith+ Noble or other mfg.

I am also wondering about lighting. I know you have a lot of recessed, but it would be a lot cozier to have some ambient lighting, even if the pots are on a dimmer. I would do hard wired sconces, one to the left of the window & one to the right of the fireplace.

i would like to return to the seating dilemma. I would think you should decide where you want to sit to watch tv. Next put the 2 chairs or couch facing the secondary interest, which as your garden grows will be the yard. i would put the lone chair by the windows for reading.

Some inspiration, coral accessories would be nice, a warm colour. Faux fur throws, copper also looks good.

Ideas for you to incorporate coral into you dining room. You just have to put your personality into it. Surround yourself in things YOU love. Nice space you are working with, lovely pieces you have, it just needs to be more inviting

Nice curtains and blinds

Sorry to digress but I what I think is not coming up in this room is:
1) the colours in the room is very flat - a little one dimensioned. Were you trying to play off a monotone look? It needs more texture and sheen from different shades of grey. I like how the single seater produces this but there's not enough of it.

2) the area rug is too small for your space. You need one that can fit all the legs of your sofas and chairs. The white rug doesn't have enough texture.
3) the colour of the floor clashes with the grey of the walls. But I think this can be less of an issue if you fix the rug.
4) I like the Santa & Cole G5 lamp but it doesn't suit your space. This lamp brings about an airiness and spaciousness. But your room lacks those attributes. It currently feels stifled in a little corner. The beauty of the lamp is lost.

I love beinheim's suggestions and do not agree that the room is too flat: it is unfinished. You should not rush.

Thank you guys for your ideas. It's true, this room is unfinished. We only watch TV when we have people over (every 1-2 months), so the adults use the TV in this room, and the kids watch TV in the family room. I can move the lamp to another room, if i find something else for that corner, no problem. I just don't want to rush.

Maybe a table behind the sofa will add more texture and layers to the room?

a few ideas:

i love these tables one has a grayish filter to it the other has a copper top.

I believe the rug shown is too small for the room and adds nothing to the decor. A larger rug in a color or geometric pattern would work better. There are two camps in the rug/furniture discussion: some people like to have all the seating pieces fully ON the rug (my preference), and others like to have the front legs of all the seating pieces on the rug. The second idea can reduce the cost of the rug and shows more of the wood floors. The first idea may be better suited to a large room which will still have a good amount of wood as a border. Your room needs additional color, occasional tables and art to bring it to life, and probably some more lighting in the form of table or floor lamps. And I prefer to have the sofa facing the fireplace. Another Houzzer commented that your preferred seating for watching tv may decide which pieces face the tv. Another question is if watching a TV set so high on the wall is really comfortable. I find that a tv at eye level when I am seated is more comfortable.

The cream rug was in one of the bedrooms, I moved it here just to ground the place until I find the right one.

As I previously mentioned the TV is being watched rarely so the height is not a big deal for us. We might move it later and replace it with the vertical blue and coral painting.

The size of the rug is 8x10. I either need a 10x10 or a 10x12 rug, it all depends on how we end up placing the furniture.

Thank you!

grover, those chairs do not strike me as comfortable, why do you not like the couch there?

I agree with Ramona, this is job not to be rushed.

Personally I think that the two seater sofa should face the fireplace with a credenza behind the sofa - without it it doesn't anchor the sofa and the remaining furniture.
I would put the side table between the two single seaters and that should be placed to the right of the fireplace.
Try placing the G5 lamp to the left of the fireplace and remove the single seater.

The rug again I believe should be about as big as all your furniture having to comfortably fit above it. And I do prefer the rig to be muted without patterns but a play on the textures.

What style are you going for?

Take a photo and let's see.

I would like to see some other finishes in your room, other than the glass tables. Some warm woods would add some needed texture. I love monochromatic rooms, but I feel you need more warmth and texture, brought in with window treatments, rugs, pillows etc. Then there's art....

dona, want me to take mine down now? it is getting rather full.