I think I need a bit more info. From what I see you need a larger patio I am not sure what you mean by cutting into the garage. IMO all itmes for outdoors should be able to be either put away or made from materials that can stay out all year. What is the round thing at the end of your patio. How many sets do you want? Is there going to be dining outside? I don’t love patios I much prefer decks but in your case the basement windows need to be considered. Your pics are a bit hard to get a feel for the space one makes it look small the other much larger. I think a to scale plan of the yard with all measurements might be helpful. As for the bar do you really need a bar ? Think about how you plan to use the space . We have tons of deck so an outdoor kitchen a huge space to be able to seat 20 for outdoor dining and large space for outdoor LR type seating and then another whole area for the pool. So IMO you need to really think about how to use the space,

I'm assuming the circle at the corner is a fire pit? When we purchase our home, we had a fire pit located like that and it was very awkward. We recently redid our patio and made a designated fire pit area. We will be purchasing new furniture and will use the upper patio for dining space and the lower area will have Adirondack chairs around the fire pit.

So I also agree that you need a much larger patio to accomplish what you are desiring.

Here's a pic of ours from our backyard camera. As I said, ignore the current furniture because the new will be coming in the spring.

We don’t have the dimensions but by the time you have a table, chairs and a lounger or two it looks as if it’ll be an obstacle course to get from the steps to the lawn. Could the space be larger? My other thought is that I’d want the area screened from the eyes of the neighbours across the driveway.