I will agree with you, not loving the furniture.

Are you able to separate the sectional? Have you tried spinning it to have chaise in the corner along the window? then face the other piece to create a U?

I would remove the padded bench Center the rug on the fireplace (your focal point)

I think a better selection for the are rug could improve the appearance.

I like the different rug choice/size however
have an oriental in the dining room this opens too.
Could a larger oriental work?

it's not the size, but the style.

How many people do you need to sit in this room on a regular basis and which furniture pieces do people sit on? How many sit on the sectional at once? What is your furniture budget if this isn't the right arrangement?

I love you rug and sofa together. I think they are great. Use what you have but tweak.

The size of the paintings feels really off to me for the space they are sandwiched into. Is there somewhere else in your home to hang them? They are beautiful and that location does not do them justice.

Is that a camouflaged tv over the fireplace? Where is the tv?

It’s a nice room. Beautiful wall color. The rug is gorgeous; I have no idea what in the world the problem is with the rug... I don’t think I want to know, either.

I don’t see a problem with the sectional. I‘m not really a fan of sofas backed up to windows - from a feng shui perspective. But the layout of your room being what it is doesn’t leave many other viable options; and at least the majority of the sectional clears the actual windows. Plus, it gives you an abundance of seating in one fell swoop.

The glass table is nice, especially if children are not involved. Only thing is - I am not really seeing the style of this particular glass coffee table being a good fit with your overall room style. Plus, since this is also a tv watching space, maybe a tufted ottoman in a leather or vegan leather or alternatively possibly velvet - would add some texture, style, as well as comfort - and in a pinch maybe extra seating, too.