Guido Reni

As you requested, light-colored materials and furniture were used to design the spaces.
Regarding construction and demolition, the only wall that was demolished is the living room and kitchen wall. The wall between the rooms can perhaps be repaired with the advice of a structural engineer.
Two design alternatives were considered for the kitchen, I hope you like one of them.
As you requested, I did not touch the toilet combination and considered a more optimal layout for the bathroom.
In the courtyard design, I also made the surface in one level so that the space could be used better and a better visual view could be obtained. However, perhaps the materials from the demolished walls could be used to fill parts of the courtyard to save on materials and costs.

I hope my design meets your taste and satisfaction.
Good luck.