This space has so much potential!!!
Definitely paint the wall something more neutral:)

As far as layout, here are some options to consider, based on what you feel fits your lifestyle best

Sectional the other way. Meaning the window wall has one part and the blue wall has the other part.

Or you can do two separate sofas. One on the window wall and one facing the window wall. With two chairs on the other side.

Because this space only has two full walls - one with windows.
It’s not ideal for a TV.
are you planning to have one in here?

Where are these windows on the exterior I see no reason for them as they are so I would plan on changing them either to actuall same sized windows or another row of high windows like I see in the last photo. IMO if you leave them that would be a pefect wall for the TV and a whole wall of TV storage and display .this is Besta from Ikea you could even just work around those windows in the design

We will likely have a TV in there for the grandkids who will be visiting. That area is the main walkway from the front door so I am having difficulty visioning any different furniture positioning than what the sellers have now.

Choose curtains that are the same colour as your wall. It really only looks odd because of the very bright accent colour, and lack of drapes.

You could put the TV on the wall with the windows like Patricia suggested and then you could put a couch opposite which would basically create a hallway in the entryway. if that doesnt close off the living room too much. Even could put an console behind the couch as a sort of entryway table?

The current arrangement of furniture is neither functional nor attractive.

The wall where the TV is now should not have any furniture on it, because it's the passage way from the front door to the rest of the house. Just put a piece of art on that wall.

TV on the wall between the 2 small windows. Long sofa facing the TV, so the passage way will be behind the sofa. Rug between the sofa and the TV.

Additional seating could be an L shaped sofa, or chairs. Do you have measurements of the room?

No measurements yet. Now I can at least see what a different arrangement would look like. Yes it makes sense.

You could easily do roman shades the same color as you plan on painting the wall. That will help them blend into the background better.

Modern Ranch · More Info

Plan on a 3-seat sofa and a pair of upholstered armchairs as your basic seating in a "U" around TV on that wall.

How do the windows look from the outside? I'd consider simply placing art over the windows and ignoring them.

Another option to go with two sofas facing each other, making vaulted wall with TV between windows as focal point.

This is an option to go with built-ins or some cabinets/console tables below windows.

Here is rough visual what I meant. Some kind of

I would go high with bamboo blinds , making windows visual taller.

Or even wider