If you are going to put LVP in a non climate controlled space in Michigan make sure it has an SPC core. Any LVP with a WPC core will be subject to the same expansion and contraction as wood and won't do well in extremely cold temperatures.

I would avoid any flooring which could be slippery in the winter. And if you do not have one out of the frame of the picture, I would install a curb to block any carbon monoxide which settles at the floor, and will fall directly to the basement.

Garages are required to be lower than living spaces for a reason. Why was this even built this way? It isnt a safe design. Period. It dhould have been a red tag. How was it not flagged?

Can't you simply replace the temporary construction stair treads (not a great photo but that's what it looks like to me) with paint grade treads & risers? Then paint them... If you're worried about slipping, use a garage floor paint with a textured additive on the treads

How about single piece rubber treads? It would seem to be an ideal product for this application. They're formed with the top and nose in one piece and often have matching risers for sale. Brands to look at would be Roppe, Pirelli, Tuflex and others. I live in populated area and some of the local flooring supply stores carry items in stock.

https://www.homedepot.com/p/ROPPE-Light-Duty-Ribbed-Design-Black-12-1-4-in-x-42-in-Rubber-Round-Nose-Stair-Tread-42811P100/204143647?source=shoppingads&locale=en-US

Indoor outdoor carpeting, it will hold up well and lots of great patterns available. It won’t be slippery either. That’s what we had and I loved it.

Here is a better photo. There is currently wood not sure if this is the wood I can just paint?

Yes, just 2x framing lumber but it can be painted with the right prep. Or you can swap the treads for something more durable like oak & risers for something like poplar.

Ofc you'll get a flood of responses about "no you have to maintain appropriate rise height & no deviation between risers of more than 3/8"". Which is implied if you're having someone competent do the work (oak or pine treads reads are either 3/4" with a built up nose 1" to 1-1/4", or they can be found in full 1" to 1-1/4" thickness, either way they'd probably need to be shimmed assuming your stair stringers were cut to code, as your existing 2x treads are 1-1/2". ) Entirely possible & not difficult to do correctly. The top step is tricky because it's flush to your garage floor, I've applied nosing to the face of the concrete in instances like this before, it's not ideal but it can be done with care and half a brain