Do you need end tables with lamps? If so, then neither location is ideal.

Yeah, I'd get a bit further with functional furniture before worrying about decorative pieces. Get your chairs and tables into this space and then revisit.

My tables and chairs are in its place
Now I’m working on this area
These shelves have to be screwed in so have to make my decision

Will this be used for books or just for decorative objects? It is really hard to know without seeing the rest of the space, what will be going where, and the different vantage points from where you see this piece. Both look a bit crowded to me but I guess the first one seems maybe a bit less so.

What I see is just a couch and rug -- no coffee table, no end table with a lamp, no chairs to sit in and converse with the person on the couch. What is this space? What will it be used for, that it doesn't need any of the above but needs a ladder bookcase?

To answer the question you asked: I like option 1 better. The space looks less crowded.

I'd say option one.

Option one based on those two choices.

Option 1. And try the sofa facing the shelves floated off the wall

You didn't ask, but I'd also move the rug so it runs the opposite way and move it closer to the sofa. Everything is very pretty!

Corner looks cluttered with it. Could you move it on other side of sofa?

Neither.

no shelf there. I think you need to round the room out before adding something like this in. Also the rug you have there is much too small its going to really limit how the rest of the room sets up.

#1 and turn the rug; put front legs of sofa on it.

Based on those pix only, I vote option 1. Can you post a whole room view including the other furniture?