Porcelain is a tough tile which will not crack or break easily. they are very long lasting. vinyl is out dated and just doesn't look good. Your other option should be ceramic tiles. So it should be between ceramic and porcelain. I'd still recommend porcelain but ceramic is cheaper, that's the biggest advantage of ceramic. I bought these porcelain tiles two weeks ago, they look lovely. beautiful hexagon porcelain tiles

https://www.loveskirting.co.uk/flooring-thresholds-c17/by-product-c29/ramp-section-c43/solid-oak-ramp-section-threshold-0-9-metre-p121

If you made outer wall then its okay to build window on the side, your neighbor privacy will be maintained and you can get the sunlight needed, I would advise to move the garage to the front so it can be accessible for a car from the main road, you can still have direct path to the garden from the front if you move the enterance to the right and just put a fence, if it were me here's the layout i will do, it'll give more space for closet, bigger bath, utility room, and additional storage unit, so basically move the wall to the left and focus buildng that side, the previous garage will become the new master bedroom with en-suite

oh old post to practice, the obvious choice is first floor extention but this only if the ground foundation on the back supports for this floor. Its mirroring the outer wall of the ground floor so enough area, there also alternative option of cantilever steel beams or concrete floor slab for first floor side extention though maybe need additional permit . Bedroom 3 will slightly Bigger than original, Plan A Plan B - Very Narrow Hallway Plan C - With Cantilever