In my solution, there are not many wall demolitions. The biggest intervention is in the kitchen area and closet/storage space. This small space I suggest you to be more for saving some little things that you wouldn't be using everyday, instead of a standard closet, because you already have enough space for that in your bedroom.
The kitchen is big enough but, you can always small it for some 40 to 60cm. And if you are not very into cooking you can always make 2 instead of 4 place cooker top.
I suggested a bar peninsula for a fast eating and also a formal dinner table for 4 people, that can be extended to 6.
In the living space I inserted a L-shape sitting with a lounge chair. But you can also make a sofa with two lounge chairs.
I placed the place for work in bedroom, because there is not enough space in the living room and it's my personal thinking that the living room is not the place for that.
The little hole in the wall in the hall, I suggest to be fulfilled with a big mirror.
I wouldn't be making many ceiling interventions, because I am on the opinion that straight ceilings will be calming the area. You can just insert a falce ceiling into the bathroom.
The yellow colour can be always replaced with another of your choice.
