Unless you have the budget for two-story treatments all around, just get shades for the lower windows and start saving up for the real deal later on.

I do love the full window treatment, however, the living room is south facing so I do need sun protection during winter months. There’s an issue as well with the large drywall between the upper and lower windows. Won’t that look silly with the full window treatment?

I also have the square window above the door that will also need something. Ughhhh how will I achieve continuity?

The two arched windows are a real challenge—they seem to relate to nothing, including each other. I’d consider, squaring them off. If you can’t afford replacing them (understandably), I’d drywall over the top curves (sort of an mdf valance, flush with the existing drywall). I’d also dress stacked windows as one, although it’s admittedly challenging with the two that are so far apart. Sometimes it helps to mount something, like some decorative ironwork or such, between the two windows.

My suggestion is to treat the problem from the exterior, so price out some type of exterior sunscreens, with motion control. You won’t need sun protection every day, or for that matter all day, so when not in use they “disappear”.

As for the dining room windows, if they are not facing south or west, you could get away with leaving them plain, which I like with the room anyway.

In the living room, leave sheers over the window itself. Cover that wall with double and a half fullness drapes to just above the top of the arch. Either put plantation shutters on the upper windows, or have your local VISTAFILM installer come in to put on his product.
In the dining room, have VISTAFILM installed on all windows. Do nothing more.

No window treatment is my vote ..in the dining room the Windows look beautiful ..I would change the Windows in the living area ...make the two upper Windows the same size but much smaller ...make them either both rounded on top or change the rounded one and make them both smaller . The shapes are bad for Windows over the two below ...I would change them to horizontal Windows no higher than 50-60 centimeters ( 20 - 25 inches , but the same width as the Windows below . .i am going crazy just looking at the difference of shapes of Windows ...one square and small , the other large with a rounded top ...strange ! Definitely even this out ...but no need for drapes above ..just do something on the bottom Windows ..I ch aged my glass to glass with a su filter baked in ..so that the sun can't blind nor change the color of my paintings or fabric in the house ...it's another option ..!

Your problems are sunlight control and privacy. Hunter Douglas and other window-treatment manufacturers make many kinds of shade products and it would be worth your time to have representatives of at least two companies come out to give you some ideas. You can get estimates from them, compare the suggestions, see the materials and come up with a plan. It won't be inexpensive, but proper window coverings will reduce your cooling bill, protect your fabrics, and give you needed privacy (with homes so close, privacy is important).

For the upper windows instead of window treatments you might want to consider window film (not the cheap stuff) that gets installed by professionals https://www.3m.com/3M/en_US/company-us/all-3m-products/~/3M-Sun-Control-Window-Films-Prestige-Series-for-Residential/?N=5002385+3292716663&rt=rud

and then add window treatments on the lower ones only.

At one time living in AZ, I know a lot of homes use the exterior sunscreens that JudyG suggest so you might want to look into those, too.

A lot of great suggestions given here. Get the professionals to your home to give you ideas and see what falls within your budget or what you need to save for.

Thank you, all for your comments and suggestions. It’s time to get professionals in to address my funky windows. I’m checking replacement vs film vs shutters. Will update when they’re finished! ❤️