When you install the wallpaper, find a new location for the towel It doesn't have to be a bar, could be just a hook.

Dark Grasscloth. that would not compete with the pattern on your shower curtain.

I would not use wallpaper at all.

If you are going to put up shelves, the items on the shelves will be of sufficient interest.

If you are not going to put up any shelves, then get a large framed print, and I would suggest removing the very small ones to the right.

No matter how many times we repair the drywall, it recracks so we decided maybe putting wallpaper would solve the issue.

i really like the grass cloth suggestion, thanks

Why does the drywall crack? Do you not have adequate ventilation in there?

No idea why it cracks, were so frustratEd. No ones ever showered in that So it’s not moisture

I would use this as an opportunity to liven up the room. Something bold, maybe dramatic, maybe fun. Don’t decide on a bigger, more permanent design around a shower curtain that can easily be changed.

Examples, scale not exact. Depending on the paper and budget, you might consider doing every wall. I’d get a solid waffle weave shower curtain.

https://www.anthropologie.com/shop/nouveau-damask-wallpaper?category=wallpaper&color=001&type=STANDARD&size=One%20Size&quantity=1p

https://www.anthropologie.com/shop/inner-beauty-wallpaper?category=wallpaper&color=015&type=STANDARD&quantity=1

https://www.anthropologie.com/shop/waterfall-garden-wallpaper?category=wallpaper&color=018&type=STANDARD&size=One%20Size&quantity=1

https://www.anthropologie.com/shop/pomona-fruit-tree-wallpaper?category=wallpaper&color=030&type=STANDARD&size=One%20Size&quantity=1

I love this one with barn owls:

https://www.anthropologie.com/shop/juju-papers-barn-owls-and-hollyhocks-hand-printed-wallpaper?category=wallpaper&color=001&type=STANDARD&quantity=1

Anyway, just some ideas to hopefully inspire, there are so many great choices out there.

White or light gray shower curtain would look great with an interesting paper:

I really like this one with the geometric feel and would be fun with the shower curtain. Very reasonably priced as well.

https://www.bedbathandbeyond.com/amp/store/product/arthouse-arrow-weave-wallpaper/5314013?epik=dj0yJnU9dmtNR2duR0w2LURyb1ZIV0VxZ3JDRG9XaEJWbURRb04mcD0wJm49Njhya05DbFhqbS1nZ1BiZ0ZLNWJ2QSZ0PUFBQUFBR0NoSGRZ

I like to look at a room as a whole and how it can be pulled together. Hope ideas below help. I’d remove towel bar above toilet (see idea below) and add hooks on the large wall for some lovely turkish towels

https://smyrnacollection.com/products/yucca-turkish-towel?utm_source=pinterest&utm_medium=social