For a cozy feeling you need to bring the emphasis to the height occupied by people. The long drapes are the opposite of this as is the chandelier that is too high. You could maybe get the draperies reworked to just cover the area below the cross-piece. Then I'd probably leave the top uncovered.

Thank you! That is the same suggestion I had from a couple friends. Also light fixture being replaced once we decide on paint on paint colors. Wasn’t sure about chandelier height as we purchased from the builder and never changed their initial install from 29 years ago 🙃

Agree with @Yvonne Martin — if it were me I would hang lush light colored (velvet?) drapes across the top of the rectangular window and leave the arched window open - an updated chandelier hung 30-36” above the table will go really far to bring in coziness