Did you come up with a solution? I'd love to see before or after photos if you have them.

make a path to back yard using maybe crushed gravel. Then place a unique used window or door where you want it to connect to a fence or don't build a fence at all & mount the window or door as stand-alone divider from front & back yard.

An outdoor room is like any other room. First decide what you want to use it for. For example, my back yard has a couple of rooms. The "dining room" is a table and 4 chairs under an inexpensive ($150) 12 ' X 12' Home Depot gazebo . The gazebo gives a pleasant feeling of enclosure and privacy when we sit at the table, and it also keeps the table clean and dry. We have a big hydrangea shrub right at the edge of this area to mark its edge. It's pleasant to sit so close to something blooming. The "living room" is 2 comfortable chairs and a love seat around a coffee table. We entertain there and pull the dining room chairs over if there are more than 4 of us. We also sit there to read in the evening. There's a smallish tree right beside it so it's pleasantly shady. The "kitchen" is the grill and a small table to set things on, and is closest to the kitchen door. Once you have decided how you want to use the space, you'll need to decide whether you want a new "floor". We have a low L-shaped deck that has the three rooms. Or you may decide on a concrete or slab patio for all or part of it. Farther from the house is some grass, and then more big shrubs (evergreen and blooming - little maintenance). And a little raspberry patch because it's fun to eat them right from the bush. The landscaping really comes last, once you have decided on the functions of the area. Don't start planting without a room plan. You may want, for example, to put one of your rooms right against the fence or wall, and if you've already planted shrubs or made beds then they will be in the way. You want to plant trees and larger shrubs so they are useful as the walls and roof of your rooms. Be sure to check the mature size of your plantings (it's on the tags) so you don't end up with branches hanging over your roof or over your neighbor's property. Don't make the mistake of putting in so many beds or plantings that you don't have time to sit and enjoy. A few low-maintenance shrubs that are planted close to where you sit are just as enjoyable as big swaths of flower beds that need weeding, annual bedding plants and maintenance (unless gardening is a hobby that you enjoy spending time at.) Enjoy your new home!

Thanks for the extra pics. Still thinking along the same line. Trim the bushes by the sidewalk to make the sidewalk more visible and accessible. If you can, replace the package with new door with clear glass or no glass and new sidelights or none. Put in a courtyard that comes out to the white wall with whatever works for you. Pavers, pavers and gravel, low decking, concrete, tile, brick. Anything. Add bench , chairs , mini trees in pots flowers. Make it welcoming. Could even add a trellis over the area. Deck could be made smaller and planting beds put in under Windows for small shrubs or flowers. Grass in the area between the ac unit and the driveway. Add a walk way from drive to the deck in material that works withe the rest. I would add pictures but don't know how.