Hi all as an update, we now own the unit (subject to settlement) and have been in with a builder. The discrepancy in the original kitchen measurements is that the floorplan has been incorrectly drawn. Attached is my update, as you can see the kitchen wall is not flush with the adjoining wall, hence the difference in width. Now we do really need ideas!!!! We are thinking about a kitchen like this too with similar flooring.

Looks fabulous.

I think this may be a great opportunity to add contrast to the hard lines of joinery and structure. As it is a dwarf wall, and the stairs could potentially acces the void from this wall, you want to avoid providing a dangerous platform to which adventurous children may use as a vantage point!!! I suggest building out the wall 2/3 the height of the dwarf wall, applying vertical timber battens to it, with equall spacing, finishing slightly above the solid wall, which effectively becomes a large planter box. So inside real or artificial foliage would not only add form and function and green life to the space, but would also provide a buffer to the void below. As It would be visible from below and above, it would become a focal point and extend the impact of the stairwell, it could also be easily styled to further compliment the timber stair treads. Plants have a way of lessening the pretence of an interior, bring nature in to soften man made lines. 👍🏻

Thank you for your response siriuskey. Several reasons as to why I would like to line the wall: We use the garage as the main entry/exit to the house. We don’t park our cars inside, and the kids play in the garage frequently. So I just thought I’ll give the space a mini makeover. We will be getting some new tall cabinetry that will run along approx three-quarters of the wall. The cabinets will need to be anchored onto the wall for safety reasons, but due to the current recessed brick work I’m unsure how. The most viable option I could come up with is to straighten out the wall. DIY Vj paneling is a cheaper option to getting the wall plastered. It will probably cost me a few hundred dollars as opposed to $1200+. Any other suggestions you may have is most welcome, thank you so much.