What do you have furniture? Getting new? It could go on a console to the left of the FP. Sofa facing FP and a swivel chair to the right of FP

I'd put the TV above the fireplace. You'll have to cut into the drywall to add the electrical connections, but that's easily patched and painted.

The wall to the right in the picture I assume across from patio door so solar shades on the door to control both heat and the glare and still let you keep the view

Yes we are getting new furniture depending on layout of the space. Is there an aesthetic reason to choose one location over the other? Or would it be just personal preference? My goal is to maximize the functionality of the space.

Measure carefully to be sure your furniture leaves adequate traffic paths. You may prefer apartment size because they tend to have a lighter style - lower back, feet vs skirt etc.

Thank you for all the awesome suggestions! just one question about seating. what should be the deciding factor in choosing between the sectional or arm chair? would one option make the room feel more open? we also have young children. I’m not sure if that makes a difference.

Using a sofa and chair is more flexible than a sectional so if you move, or decide to rearrange, it would fit the new space, or if you need to replace one upholstered piece, it's not the whole thing. It can also look more open with a floating chair since you'd have room on either side and can use an arm chair with legs. However, a small sectional could also work in your room. A lot is personal preference. If you wanted a sectional, I'd consider one that has a back at the window and just a chaise portion across from the fireplace so it doesn't close off the room as much.

I 'liked' calidesign's post about sofa under window, which is ok -- tv on the empty wall. If you want to see it upon entering the house, try covering it with custom door fronts. Not a sectional.