My window is in the shower area too. It is crazy. If I could I would change it up.

A waterproof/water-resistant metal window frame with extra-frosted glass window panes will
not get moldy. You don’t want a wood window frame in a shower because it will eventually mold and rot. I would also add a made-to-fit semi-sheer plastic or vinyl curtain for privacy since there are lights over the shower. Another choice would be opaque glass blocks if they would fit the opening.

It is a selling point in NY to have a windowed bath or kitchen. Older houses and apartments have windows in all the rooms, including bathrooms. In a lot of cases the only place for it is in the tub area. You can open the window for ventilation which reduces the possibility of mold.

I would redesign my bathroom so my bathtub is at the entry wall, my toilet just after that in the windowed wall with the sink next to it.

It may be the only possible location for a window in the room. It brings in some natural light so you don’t need to use electricity during the day. It’s frosted so it doesn’t need to have a window treatment, but if you are concerned about privacy you could add a waterproof window shade over the lower half. A window allows for some ventilation if there is no exhaust fan.