@Natalie we’d be in there with them for most (if not all) of the time. Our family aren’t local so having a space for them to stay is high on our list while we’re able to do so, and we don’t feel the girls need to have their own rooms yet (will reconsider when they’re older). We don’t have a big living area so having a safe designated space for their toys and dress up etc would be more beneficial for us at this stage
Then I'd use the bigger as the playroom if the other is just going to be used for sleep.
Since they are so young, you could probably have them share the smaller room, but it'd probably just have them in the bigger room so I didn't bavevto rearrange everything
Share the smaller, it’s just their beds and their clothes storage. Bigger room means more space, more play mats, more imagination play space. Also creates a sharing environment, not “this is mine and this is hers”.
Tbh I wouldn't create a playroom. I find children play wherever you are so unless you'll spend a lot of time in there with them id give them a bedroom each.