I would also prefer to go from the living/kitchen area into the garden, but having the garage as a balcony does offer possibilities. You just have to know what you prefer. However, there are regulations for balconies on garages if they are in the edge development. I think I read something about that once, so definitely check whether that is even possible. If yes, I would definitely also add a comfortable staircase from the balcony directly into the garden.
In your case, I would move the office forward on the right side of the living area and create a small separated space. Remove the wall between dining and living, move the living area further to the left side of the plan, and then place the WC after the office, separated from the living area by a small corridor, and you would gain a storage room upstairs (although I would definitely miss that in the upper floor). Overall, it would bother me to always have to carry groceries all the way through the house upstairs.
I am making a small sketch (not to scale, just for idea generation):
Another possibility would be to consider a split level, giving the living level direct access to the garden, the upper area as a parents’ wellness area with bathroom and sauna and a small roof terrace (Wow, that’s brilliant: you can lie outside after sauna sessions!) and then in the lowest area children’s rooms, hobby room, storage with its own bathroom. A good architect can surely create an ingenious design here.