Thank you for the link to the floor plan. I have been hoping to see one. I know it’s not a definitive plan, but it’s from someone with many years dealing with real estate.
I do not (at all) agree with the proposed floor plan for quite a few reasons and generations of real estate, home construction/ engineering, rental properties and flipping experience in my family.
First, open floor plans weren't a thing at the time this house was built.
Second the large picture window on the front of the house to left is almost certainly the living room. This isn't a luxury home build that would put larger picture windows in a master bedroom. The big windows = living room in 90% of houses.
The proposed floor plan also puts two very different windows in the living room. One that is taller and double wide and one that is short and small. This is unlikely. If there were two windows in the living room on the same wall they would likely match.
Second, builders often avoid putting bedrooms over top of garages because it costs them more to do so. Insulation to keep the bedrooms warm and to reduce noise. It also usually means finishing the ceiling in the basement (which many builders don't do).
I think the odd placement of the deck off the east side of the house where I believe the bedrooms are located was done for practical and economical purposes as an add on (maybe when that permit was pulled that someone mentioned).
Previously the house had no exit aside a front door. Having been in these types of homes for both buying and selling purposes this is a huge deterrent and major inconvenience especially if the family has a dog (it means the dog is left to go out the front door for it's business or you have to go up/down steps to let them out).
The only other option would be to do a deck off of the back elevated second floor (likely kitchen, which I believe it centrally located or located to the back north side) which would be a costly endeavor and require a level of skill that would likely require a professional install (most states require that staircases on decks that are two stories tall have at least one landing which increases cost significantly, has to meet code regulations, etc.).
My guess is that the deck was built (maybe coinciding with getting Molly) and the door added at the end of the hallway leading to the bedrooms then because taking her out got to be a pain in the butt. It's an odd placement but would have given that second exit they needed and allowed James to do the work himself at a significant savings.