I'd add some framed art and call it a day. the current style suits the room.

I'd get a great area rug to introduce some color, although subtle, and enjoy it.

This doesn't need to be done before you move back in, so let it be until you recover from the disaster and change it later if it ends up still feeling wrong to you. If you haven't already, browse the pictures in Houzz (there is a heading for fireplaces under Ideas) and see what appeals to you. I don't know if this is a gas or wood burning fireplace, so just make sure you understand the code for a hearth (if required) before the flooring is finished.

Thank you both for your feedback and the idea to leave it for now but that ship has sailed. :/ lol The photo I posted was after the flood but before the full demo...this is a current pic of the fireplace. The original mantel was drywall and I had been wanting to replace it for the past 10 yrs, just hadn't fully thought out what I would do instead.

If open to the kitchen, consider replacing the credenza under the TV and the shelf above it with built in cabinets that match the kitchen, the full width of the recessed area. Then see what your wants to do with the fireplace section. Maybe one of the designers that do the photo renderings can help here...

You could look at matching the console/shelf to the cabinet wood in the kitchen, and then look at doing some sort of tile all the way up on the fireplace since it has already been demoed. A few designs of ours are below to help give you some ideas:

Suncadia Mountain Retreat · More Info

Echo Lake Modern · More Info

The fireplace seems to fit the decor and once you place decor on the shelf above the TV all you need is a painting you love to hang above the fireplace.

Thank you for all of your feedback. I definitely want to incorporate the warmer wood tones from the kitchen into the living room area so that the space feels cohesive.

May be some kind of with wooden surround?

Also partially painted

This process really helped me explore different design directions and visualize ideas I’d been considering—like wood paneling, darker paint, etc. Seeing the renderings helped!!

Also, the feedback to leave it as-is and give it time was incredibly helpful in realizing I don't need to make ALL the decisions prior to moving in. I’ve decided to move forward with a partial update: we’ll build out the wall, smooth-coat it, and add a wraparound wood shelf. Then we’ll live with it for a bit before deciding whether to add a stone slab or tile later. It's a relief not to have the weight of another BIG decision. Thank you :)