Post more photos of the hallway from both ends.I don't see anything MCM about the space. Take down the shelves that stick out. It looks like you have a recessed build in behind the door? Could that be converted to a closet so you have a place for the coats/hats? Otherwise you could do a very narrow builtin along the wall that incorporates the bench and storage using all your vertical height - something like the right side of this example.

Classic Transformation · More Info

The exterior the house is mid century, but we are trying to redo the inside to keep the style of the home in the interior.
No recessed built ins, calidesign. That is an opening to another room.

what's this inset thing?

if you want a mcm style, combine some of these looks

ikea or other places have a shallow floating shelf storage thing like this, for shoes.

or get a bench and put baskets or build cubbies to store shoes.

you need something else for jackets. unless you can do a long wood piece w/hooks like shown in the pic