With your original pictures - I agree with larger rug. But I don't agree with comments suggesting the rooms are monochromatic. They are lively indeed. I think you are just missing some accessories! Art work on the empty walls - even just a single large dramatic piece is in order. In the bedroom on the white wall, in the living space behind the sofa, in the greenish bedroom behind the two beds. Those are instant areas where you can improve. But I think your spaces are lovely and well put together. Also I agree with the comment about table lamps - some of those would really add something, and your coffee table looks so empty - maybe just one gorgeous bowl, or stack some books. These rooms are 90% done in my opinions, just need a few finishing touches. Some of my rooms come out like this because the clients are not willing to pay for those last few finish items or feel they can do that part themselves...

On your paint problem I can't be much help. This usually happens because of damp -- please get a damp expert to make sure that there isn't any damp lurking in your walls. I had this once when I had pipes leaking inside the walls. I didn't know that. The other alternative is something like painting before the plaster is dry or some kind of chemical mismatch. I do know you will have to scrape all the mucky powdery stuff away and start again, at least on those areas. Don't try to seal and prime and repaint until you know exactly what the problem is and how to fix it.

that is what i have added if you can see the pic above.. want some suggestions on partition that i can use between dining and sitting

I feel partitions are not needed. You already have too much for the space. Adding a partition will shrink the space further. The simplistic solution, you do not wish to discard any furniture would be to paint all the walls in lighter pastles. And use some wall painting frames to highlight certain walls.