Best suggestion I can think of for limited budget and without ripping out the existing vinyl to replace with porcelain or ceramic is stone-look vinyl peel and stick tiles.

I would go to a flooring store and see if they have any sheet vinyl remnants. From the photo, your bath appears to be small enough for a remnant. It would be an inexpensive fix that will last.

My delimma is what color too!

Go shopping nana see what’s available that you like that might work in the space. That may also mean painting the vanity and the walls. Can’t see what color is on the walls and from the bit of vanity that I can see it looks like it’s got a pinkish tone, but that could just be the lighting.