Excuse my duh-ness but i'm having difficulty trying to follow whats going on here. Are these two photos an exact replica of your house and pool ? If not a hasty sketch with dimensions could help a lot. By kitchen wall do you mean the wall behind the bar ? And where is the pool wall ? Are you considering the covered area as being "inside" ? Sorry for all those questions lol Sometimes when you have a design problem you need to turn it inside out or on it's head. If you can't beat it maybe embrace it by making a feature of it : i.e. contrast by having the lightest colored pool surround and a great blue or tile inside and under the overhang, something that will echo the water color ? If you have a great covered area as in photo you'll most likely be spending a lot of time there and it could be soothing to be able to sometimes retire into a darker inside. In my book, 10M isn't small and also contrasting two floor colors doesn't necessarily make a space seem smaller and confined and may in fact even open it up. Could it be that you've thought yourself into a box here ? Sometimes one needs to give it all a good shake up and see how it resettles.

Thanks everyone for the warnings. Honestly I had not thought that could be possible so just in case I'll gear up with a mask to avoid inhaling any of it. I will still need to remove it, but from what I read the problem with asbestos is if you sand it and make it into breathable particles, so ripping it out should be ok. I've looked up in youtubr and there seems to be a tool called mastic remover that you can put on your floor sander and it would scratch the surface removing any of that stuff.

Hope post shows, got some weird error message

Provided there is 1200mm clear between the breakfast bar and the opposite bench then by rights, you should have ample room and if that's the case, I think I would opt for the design with the kitchen on the eastern side. My reason; you get a much greater feeling of open plan by having the dining and lounge on the North/South plane. I like the large WIP in this one - on paper at least. The second plan somehow feels wrong. I personally don't like the idea of having the breakfast bar being located in the lounge. If it were me though, I would ask for a 3D CAD plan of both kitchens [to walk through on the computer] before making up my mind on which one to opt for as it gives you a much clearer vision of what the finished kitchen will be like rather than looking at a flat plan.