This one is good too.
I also like the living spaces (dining / living) best this way.
Disadvantages:
-Utility room between bedroom and children's room. What do you think about placing the washing machine and dryer in the storage room in this case? That would probably ease the situation, but then you would have the "noise" near the living room
-Bathroom next to the bedroom
-Hallway with little to no space for a wardrobe (only under the stairs)
-Hallway has too little light due to the narrow door (maybe a glass door could help here)
-Relatively small living room but we can live with that
Relocating the washing machine is an option. I would rather buy very quiet appliances. I did that with my fridge as well.
Regarding the bathroom next to the bedroom, I have already moved the loudest pipes (toilet, shower) to the other wall. I would probably also make the wall to the bedroom a bit thicker. The question is how bathroom usage will be distributed with children. Presumably, you are the last ones in the bathroom?
The hallway is too narrow – the house needs more length here (which soon becomes absurd).
Light is not a problem – next to the door you can put a glass element. That can easily be placed before the stair entry. The door itself can have a large glass section.
Remove the wall between the living room and dining area. Is it big enough?
But maybe start over again. I have another thought....