Have you tried the sofa facing fireplace?

Chair on each side...

I love your mixture of colors, textures & patterns, but the space is definitely a little challenging. These are my recommendations for you: Leave the sofa on the wall but center it under the art. I would now place the chair & ottoman combo in the corner with the windows facing out diagonally while the tufted recliner faces it from the other "corner" of the space (the style is too drastically different to place it next to the other chair, & their location now cuts into your traffic path).
Set your floor lamp/table combo between the corner chair & sofa to share, then place the other table & lamp on the opposite side of the sofa.
Your rug needs to be larger…try an 8'x10'…your upholstered pieces need to be touching the rug for the sake of visual cohesion...you'll be surprised how it'll make the room look larger.
On a side note; placing artwork above doors & windows is usually a bad idea….you can't see it, & it confuses your focus.
Also, in order to more effectively apply window treatments, you need longer panels mounted in the top 1/3 of the wall above your windows (same goes for your breakfast area unless you change to cafe style). This is the correct way to raise your focus upward, & in this case, it'll function to make the space feel loftier & highlight your millwork as well.
In the corner next to the f/p, I would not use 2 pair of panels…I would use a continuous rod that you can mitre in the corner & one pair of generously full panels to "frame" the entire corner…you'll love the outcome!
If you love the panels your currently have, then find a workroom who will sew them together into one pair & add a banding across the top or bottom in a coordinating fabric that will lengthen them appropriately (try tie backs too).
Good Luck!

Thank you Kim Harvey Design for your great advice! So, on the wall side of my living area I should have my sofa with the chair/ottoman (diagonally) with the floor lamp in between those two? The recliner should be in which corner? Where it is already pictured or where the chair/ottoman is? My only concern with putting the table & lamp on the opposite side of the sofa is that it is very close to my stairway. I've added a picture below of right when we moved in. Also, could you attach an example of the style of window treatments/rod? Thank you so much!

Sofa facing TV. Big coffee table 36" square. And chairs on either side if it.

Aha! That helps!
Your room isn't large enough for a hefty coffee table especially w/the 2 chairs added to either side…hence the angles I originally suggested.
Now since that left-facing wall isn't long enough to accommodate the sofa, chair & table combo, then I would move the sofa to the wall facing the TV & f/p…use your floor lamp there...run your (larger) rug lengthwise w/the sofa.
Keep the persimmon chair & ottoman in the corner (I'll look for a window treatment pic for you too)…in order to "interrupt" the 2 chairs because there's really no other place for the recliner now, place the table & lamp between the 2 on the window wall so that you can use the recliner (placed at an angle as well) for TV viewing.
I would also use either a coffee table or ottoman w/tray in a round or oval shape in order to avoid hard & harsh corners…they make moving through compact spaces much less hazardous!

I just saved another one for you under the same heading that shows a great grommeted design w/iron hardware. Happy Designing!