What purpose is it serving? Why can't you remove it?

I think I would treat it the same as the wall if the bump out can’t be removed.

I’m no pro, but I’d remove the wood strips on it. As Kate says, make it look like the other walls and add matching wainscoting. This looks like a “feature “ wall I saw in a recent HGTV show - how it was supposed to entice buyers. I’m not a fan, especially with the color. I’m guessing there’s something behind it that was ugly and/or needs to stay.

It's probably hiding something - maybe plumbing, but it is awfully large. Proceed cautiously if you go to remove it. Don't hack away at it - cut out a square of drywall so you can shine a flashlight inside to see if there is anything in there and put the drywall piece back if it is hiding something. It looks like the previous owners tried to make a feature out of it, but I think if it were painted the same as the rest of the wall it would disappear (somewhat), which would be better than emphasizing it. You could remove the faux wainscotting/ molding on the lower half of the wall if that doesn't suit your style. Since this is the family room, is this the right location for the TV?

How about this idea? Remove the wood strips and apply a mural.

https://www.primedecals.com/Fireplace-Wall-Mural-Decals-_p_742.html

I’m pretty sure there is a fireplace under it that is non-functioning.
Owner is the general contractor so my daughter will check.

Inspector did not comment on it.

Do you have any additional pics of the space?

Inspector said there was no concern. It covers the fireplace/chimney. A lot of the houses cover it with drywall or paneling. It’s a decorative choice.kandrewspa- yes, it’s where tv could go in the open family room.

Take the decorative trim off of it, then add molding and paint similar to adjacent walls.

Or, again remove the accent molding. Add built in shelving on the sides, and fake doors on the lower part of the bump-out, and a large piece of artwork on the top. It will make it look like it is meant to be there.

Paint same color as walls and add art.

Or…restore it as a fireplace?