If it were mine, I would buy enough panel(s) to cover the window(s) when closed, but stack them back to the outside when open... away from the fireplace.

Lynn-You mean have them stacked just on one side?

I would not do panels I would do roman shades. The correct fullness is 2.5X the width of the window which if hung on the outer side of the window is going to cover some of the window

One panel, stacked back to solid wall. Hang the rods nice and high on the wall.

Photo 3....don't have too much fabric, otherwise the curtains will cover a lot of the window.

https://www.interiordesigngreensboro.com/2016/01/06/drapes-on-both-sides-of-the-window-or-one-side-only-7-pros-and-cons/

Hi Barb- thanks for your input. I am in favor of eliminating the corner cabinet. It is a piece with a lot of family history on my husband’s side ( we dismantled his grandfather’s barn and hauled the wood up and over railroad tracks then loaded it in a trailer and transported it across a few state to home then had the piece custom built!!!). I prefer to eliminate the piece and place a tv on the wall you suggested!

Back to my drapery panels… I have panels that are 108 in and probably will mount them on either side of the windows. About 6.5 inches from the edge of the window trim.
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Barb? Who's Barb?

You can't mount panels any higher than the overhead ceiling from the catwalk.

Wow-really sorry Beverly!! I mistakenly said Barb rather than Beverly.

Have you tried moving the furniture around in the room to see the effect?