Are you looking to buy new items, or are you going to work with what you have? If you're working with what you have, do you have other items in other parts of the house that you can use here? Is the seating piece on the right a love seat or a couch? Can the tv be moved? If you're looking to buy new items, what is your budget?

Mounting the TV over the fireplace mantle would look nice. Instead of having two identical couches, one couch and accent chairs would make the room more interesting.

At this point I need to work with what I have. With 6 kids, I'd like to keep the larger seating pieces. It's a couch and a loveseat. I could potentially move the tv but not while in quarantine:)

Do you have room to move the right hand couch to where its back faces the dining area? Move the patterned rug on the diagonal so it mirrors the slant of the fireplace.

I agree with BeverlyFLADeziner on the layout.
I would also remove one rug or the other. The light one will get dirty with the kids playing in there, but that’s normal, and the kids need knee protection. The patterned rug is too small for the room. The TV would be too high for comfortable viewing over the mantel. I would move it down closer to the chest below it. Buy several large square baskets for the kids to learn to put things in when it is “clean-up time”.

Absolutely not TV over that mantel What you need is a lower TV stand so that the TV is at the proper viewing height and the wires are hidden.What I see is alot of clutter that serves no purpose , to start remove everything except the furniture you need to keep, you need toy storage so that could be included in the new TV stand. The TV where it is makes it impossible to view straight on for anyone .I think the extra rug is just one more piece of clutter and you need good lighting for sure.Beverly’s layout would be much better for sure it might even allow for the TV to be on the right wall with more storage too.