This is an interesting room. I would put both subs up front if possible, but sometimes opposite corners can work well. As mentioned, the side surrounds should not be in front of the LP, and the Atmos speakers also need to be moved back and centered over the LP like this, or forgo them.
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You mentioned rear speakers being in ceiling. Which ones exactly? If you mean rear surrounds as in when you go to 7.1.4, I wouldn’t do that, as the hight differential between the listener level speakers and ceiling speakers is why atmos works. I would move the Atmos locations back a little and maybe move the couch forward a little. That way you can get the surrounds at least at 90deg. I wouldn’t pursue 7ch. 5.1.4 will be great, and I don’t see a good location for rear surrounds. Could you add the original diagram back to the thread? I was hoping to see what to do with the surround speakers.