What is in the room just past this? It looks like you could add a wall between the closet and Powder and include the hallway into the laundry space... pending what is in that small room at the back of the hallway.

That hallway goes into our master suite. We don't really want to move walls around (at least in this area of the house. We don't want to change around the master suite).

Okay with that view I would say...

Frame in the existing door and flip the entrance tot he "south" wall using a pocket door.

I like the idea of centering the door, and making it either a bifold setup or split sliding doors. Or just have a centered entry with no door. Which wall are you stacking the W/D? I ask because you'll want the room in front of the stacked set to dismantle, and work on the units if needed. I don't think that is a big deal. Dryers are light weight. But you will need to take off the dryer, and still have room for the washer to be pulled out. To me the best place for the stacked set would be along the vanity wall. Is there enough room for the set there and a sink next to it? What kind of folding space will you have? Will you remove the toilet? I'd like to see a drawing of you proposed layout with measurements.

Install a double door and have it open out. Each door is approximately half the width of the original door. you may have to get this custom through your lumber yard or wherever you get your doors. it's more expensive than a single door but solves the problem and will look handsome.

The Door needs to stay where it is. We’re putting the stack on the wall where the vanity is now with a cabinet next to it and the sink where the toilet is now. It is no longer going to be a powder room.

Thanks to all who have made suggestions so far

I like your plan Deb. Be sure to have the water shutoff valve and dryer venting easily excusable so you can shut water down between uses. And you can do routine maintenance with dryer vent clean out. Another consideration is that you have the appropriate amount or run for your dryer setup. Dryers have limits they can push air out of the system.

Check your building code because it may affect the type of door you can have on a laundry. I have a pocket door. Code required an air return type of vent since I didn't have a louvered door. Annoying, because the door is open when I do laundry.