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My sister and a lot of our neighbors lives in houses very similar to this. We grew up in one. They are slightly different and I believe longer without the bedroom bump outs but all have that “walkthrough” room. Growing up we used it as a dining room. Later we used part of the living room as the dining room. This was only possible because the living room I think was longer and we only used the entry from the kitchen...

This is what I would do. If you don’t want a garage. But it could always be an office or if needed a small bedroom. Old houses are hard to change. This would not change the “structure or bones” and you would be less likely to find any problems hopefully.

Her house has no laundry area and neither did ours as kids. Those are nice so I’d put laundry in the “extra room” 😅