Maybe I’m wrong, but I’m guessing the wallpaper is not the same vintage as the house. Regardless of when it was put up, it’s a disaster! Fussiness and flash are the opposite of good modern design, and that paper fights and fights with what ought to be the clean lines of the underlying design. The furniture, too, is poorly chosen.
The sunken living room has escaped the horror of the wallpaper, and the mix of wood and stone is what I think the whole house was supposed to look like. But here’s a word to the wise: sky blue never, ever, looks good against honey-colored wood.