You will get much better help if you post a to scale floor planof both spaces . Show every window, every doorways and where those lead , every measurement clearly marked. Use graph paper to make it easier Post here i jpeg format in a comment Some info too as to how many everyday seats , I do not see a TV some assume that is not needed . Some hint as to style too.

Agree with @Patricia Colwell Consulting

Also is the kitchen trough the French doors? Do you use the FP? Do you need coat/shoe/boot storage near that entry?

Christmas tree should be in front of one of the windows, preferably the one next to the couch. I'm not sure about anything else without seeing the new furniture.

I actually think the tree would look great on the blank wall with the bump out. There are no videos on Houzz. Looking forward to your floor plan so more help can be offered.

Thanks everyone, what is a good free tool to create a floor plan easily?

You can just draw it in graph paper, or you can look your house up from realty listings.

When yoir new furniture is chosen forget a sectional and also never a chaise . A sofa 2 chairs perfect 2 sofas and two chairs great if you have the space arm rests = comfort BTW. A chaise always leaves one person sitting with their feet up in your LR weird . The plan is easy just rough sketch the shape of the space then measure and mark those measurements on the rough sketch then go to graph paper and draw the space to scale usually 2 squares can = a foot Mark the windows , the doorways just all the stuff I said . By the timeyou figure out a new tool you could have 10 answers

I disagree with the sectional hate. Your space is quite large, or looks to be in pics, and could have a sectional if that was desired. A lot hinges on who uses the space, what the purpose of the space is, your family, how and if you entertain. For our family of five our living room is also our main TV and family room. As a result a very comfortable sectional is wonderful in the space and works well. We also have two leather chairs for added seating. Our sectional is also a sofa and chaise is an add on with an ottoman added too. All three pieces can be separated if need be which makes it super versatile.

https://circlefurniture.icovia.com/

Link to Room Planner

it's not as awkward as you think it is. The windows are great and you've already solved the window covering dilemma.

I would put two sofas facing each other in front of the fireplace.

Spin the area rug the long way, centered on the fireplace.

Good place for the Christmas tree, during the off season you could add a side chair or rocker near the fireplace.

I would put a long credenza or buffet behind the sofa (where the gray chair is now) separating the dining area and living room. An oval dining table that could be converted to a round for everyday use and expanded to seat more for entertaining in the dining space.

on the entry side of the room add a slim sofa table behind the other sofa. add a table lamp in front of the light switches, a large bowl to drop your keys, etc.

I'd find two large canvas prints for the entry hallway wall www.greatbigcanvas.com is a great affordable source.