Is there an option to paint over the teal walls?

Repaint. This time you'll probably want to get a color that coordinates better with the floors and furniture. That means bigger sample boards or peel and stick to view in your space and light. Everyone has to do that. I'd repaint myself. Always use an extension for your roller when painting. Wooster Alpha for your angled trim brush.

Personally, I would donate the sofa and chair. A nice white slip covered sofa (Pottery Barn has great ones) in a slimmer profile, one coordinating chair to go with whatever paint you choose, some nice art, end tables and lamps. I like the dining room chairs but you could paint those a softer color. Area rug in seating area. My favorite beach wall paint is SW Breathless…it’s a slightly periwinkle and a good background for art. Also, you need a slim piece of molding all around the top of current molding to close that gap.

Is this a rental (where changes may be limited) or did you buy/inherit this unit?