I’d do the two bathrooms. I like the first pic.

Two bathrooms....

Have you decided whether or not to keep a full bathroom on the ground floor? If now you only need a powder room, what will you do with the rest?

I don't think anyone has ever complained of too many bathrooms in a home (unless they are actively cleaning them all at the moment). I think a dedicated master suite adds value if you're thinking of selling eventually, but even just for yourself, it's a really nice feature to have that private bath separate from kids and guests.

I don’t think it’d be worth it to downgrade the downstairs bath to a powder room, so it’ll probably stay as is.