I'm trying not to suggest speakers until we know the total layout. But based on the location of the side and rear surround speakers, I wonder how much impact the rear surround speakers are going to have 38 feet away from the Fronts. Based on the photo, I'm thinking the start of the nook is less than 10 feet away from the front wall. The nook seems like an outside wall and not a good place to put in-wall speakers. I'm also guessing the speaker cables come out at a foot off the ground beside the wall plug.
If I'm wrong and the speaker cable comes out of the other wall of the nook, then maybe hang a bookshelf speaker off that wall, and put the other one on the cabinet on the right of the photo. Or do in-walls if the cables come out of the main walls of the room.
I just re-read post#30 and it stated "my seating will be 9 feet from wall". So I'm thinking this whole setup, unless there's a lot of rows of seating we aren't aware of, is certainly forward. At 9 feet a large TV (75 to 85 inch 4K or 8K) is definitely the way I'd go. If it's just for a single row of seating, then a 5.2.4 may be the way to go. (You can install in walls at the rear for parties when you use all stereo mode
as the wiring is already there. Rear speakers 30 feet away seem too far for a Dolby setup for the rooms & receivers I've done.) The 9 foot width doesn't doesn't really push one towards large towers either. Once you pull them away from the walls a foot or two they'll be crowding the screen. Is there really a need to consume all of the budget? It just seems overkill to me.
Certainly need a good diagram to figure this out. Just draw it on a blank piece of paper and take a photo with your iPhone and post it. Thanks.