Sleeping with the boss has almost never ended well for anyone - not the boss, and not the person sleeping with the boss. And that's not even counting the chaos that ensues for the rest of the workplace when this happens! In other words, this is a potential professional minefield, and you're right to be concerned about possible repercussions.
I feel a ton of empathy when I see tricky living rooms, because I know they can pose a frustrating challenge. Whenever I do a design consultation where the client has been struggling with layout, I tell them 'I can totally understand why you're having a tough time with this space - it's a real head-scratcher!'.