It doesn’t look like you have many options unless you want to move walls.

You are using the FR as the DR so of course it will be far from the kitchen IMO without removing walls there is no real other option I would try to move the laundry to make the kitchen larger and have an eat in kitchen What is the reason for the step up at all? I need more info please .

There was another thread about a small step down into a living area and it was suggested that raising the level be considered. This was because of a tripping concern, which I think is your concern. Is it possible in your space as this may give you more options.

Three bedrooms with a desperately needed extra bath should be your #1 priority, Plan for that now. It will make life easier and increase the value of your house. W/D in 3/4 bathroom plan:

The original bath layout is strange. Taking up space with a toilet closet doesn't make sense, nor does a toilet without a sink. Dirty hands opening a door? Take the cubicle out of the plan and add a double sink.