IMO the TV belongs where the bookshelves are , you need much less bulky furniture and I would look for a dining table drop leaf style against the wall unless you need all that seating every day. This is a tiny space so pare down what you have in it If you want a few bookshelves then do low ones with the TV above

Thanks for your input! This isn’t our furniture but the previous owner’s. I’ll look into your suggestions

Or: put the TV (on a movable arm) on the short wall, under the cat picture, with a small console table beneath it. It can be flush against the wall when not in use (like a Frame TV), and pulled out while watching. I’d put the sofa on the current sofa wall, but a chair in the left corner, opposite where it is now. Of course since you’ll be using very different furniture, this is a moot point. (I think that placing the TV on the book case wall might conflict or be odd with the dining table.)

I'd put the sofa facing the fireplace/TV.

limit the bookshelves, if you can move them to the other wall (sofa wall) closer to the windows.

@coray oh! I didn’t think of the TV on the short wall! That may work.