No to a deck. Decks=MAINTENANCE and upkeep. Clean up the over grown plants around the air-continioner, get a screen and plant perenial flowering plants between the screen and the brick. What's under the fake rock? I would unify the ground cover--to all red brick in that area. More pics all angels, farther away so we see large expanse of your space is needed.

What arcy said about farther-back photos.

In picture #1, is that a raised planting bed in the corner surrounded by painted-red boards? Looks neglected. If gardening isn’t your thing, remove that and move your bbq further back a bit. It would give you more room for chairs for individuals smoking. (Or, did you mean smoker i.e. for smoking meat? You need more room for that too.)

Yes the corner is a raised planter bed surround by 2x12 boards. It was there and we want to remove to turn into area for outdoor kitchen and place a smoker. As for the area by air conditioner, the fake rock is over sprinkler valves.

Different angle photos

I would remove the wood that is around the perimeter. It’s not functional in any way and it’s making your space feel much smaller. If you take that out and then post more photos you’ll get good advice.

I think I would have to also clear some extra dirt

Yes, remove the boards and extra dirt. Hire a strong teenager for an afternoon to take care of that for you. I think you’ll be surprised at how different that area feels when it’s all open and one level.

I have sprinklers running through there also that need capping