Both are feasible. Obviously.
Functionally, the first one would probably be preferred, visually from the outside the second. I’m more inclined towards the first.
However, the question is whether it wouldn’t also be possible to plan the same window in Child 1 and the children's bathroom and then have just one quite wide, large window centered between these two windows in Child 2. Wouldn’t that also be an alternative that involves fewer compromises? Given the compromises already present, I don’t really see much sense in the large + small window in Child 2.