Your speakers are fine for the karaoke music but I don't recommend singing through them.
Most people are not audio experts, they just want to grab a mic and sing. If they don't understand concepts like stage gaining you could damage your AV speakers if you try to sing through them.
I recommend a mixer and a powered speaker to sing through.
Because the powered speakers I recommend they already have a simple mixer so you don't absolutely need a separate mixer. But I recommend one because they have vocals effects and it's more convenient having the controls close to you instead of reaching around the back of the speaker all the time.
Mixer
I don't own this mixer but it's highly recommended by others. I recommend it because you can use standard XLR cables to connect it to most powered speakers.
https://www.amazon.com/Yamaha-MG06X-6-Input-Compact-Effects/dp/B00I2J4V5G?th=1
Speaker
https://www.amazon.com/Mackie-Thump12A-1300W-Powered-Loudspeaker/dp/B073V7MKQZ
https://smile.amazon.com/Rockville-RPG10BT-V2-Bluetooth-Wireless/dp/B084KZCY54?th=1
TV or Ipad audio output into analog mixer
https://smile.amazon.com/BEHRINGER-XENYX-1202FX-3-pin-Black/dp/B000J5Y214
Wireless mics output into analog mixer
Output of analog mixer into powered speaker
https://smile.amazon.com/Mackie-Thump12A-1300W-Powered-Loudspeaker/dp/B073V7MKQZ
1) not required but I highly recommend. I use these and they work well for karaoke https://smile.amazon.com/innopow-80-Channel-Microphone-Continuous-WM-333/dp/B0749L15PF
2) Bluetooth introduces a delay that makes it unusable for karaoke
3) OpenKJ is a great piece of software. I wouldn't invest in anything else unless there is an option you can't live without it doesn't have. However I recommend the Karafun subscription service and their software.
4) For a budget mixer I recommend these because they have vocal effects and XLR outputs
Yamaha MG06X
https://smile.amazon.com/Yamaha-MG06-6-Input-Compact-Stereo/dp/B00I2J4V5G
or Mackie ProFX6v3
https://smile.amazon.com/Mackie-ProFX-Mixer-Unpowered-6-channel/dp/B07XC3BHTL
For speakers I would recommend
Alto
https://smile.amazon.com/Alto-Professional-PA-System-TS310/dp/B07CKBWYV5
or Mackie
https://smile.amazon.com/Mackie-Thump12A-1300W-Powered-Loudspeaker/dp/B073V7MKQZ
Finally I would recommend using the Karafun professional subscription service and their KJ software instead of OpenKJ. It's free to download and they have some free songs you can try it out with before subscribing. Their catalog is updated regularly so you don't have to worry about buying the latest releases. You can use your own external hard drive of songs in addition to their songs but I don't use my external hard drive much these days.
Yes, the V888. I know them well. Spent a whole summer in the basement with one digitizing a friends entire karaoke laserdisc collection.
I like this mixer
https://www.amazon.com/Mackie-ProFX-Mixer-Unpowered-6-channel/dp/B07XC3BHTL?th=1&redirectFromSmile=1
This would be a good speaker.
https://www.amazon.com/Mackie-Thump12A-1300W-Powered-Loudspeaker/dp/B073V7MKQZ?redirectFromSmile=1
To stream from Youtube I would recommend using a device you already own like a computer, tablet, or Smart TV.
For something portable you might want to look into these all-in-one systems but I have no personal experience with them.
The mixer is a good choice.
The cable will work from your laptop to the mixer if your laptop has a 3.5mm output
Connecting the laptop to the TV via HDMI allows you to have a separate screen on the laptop to operate Karafun while projecting just the words to the TV
There are many wired mics out there that will work fine for home use. But I recommend the Shure SM48 with a on/off switch
https://www.amazon.com/Shure-SM48-LC-Dynamic-Microphone-Cardioid/dp/B0002GZF5W
There are many powered speaker(s) that will work well for home use. I recommend this one for a low cost speaker that I personally own. I like the 10" woofer version because it's not too hard to move around.
https://smile.amazon.com/Rockville-RPG10BT-V2-Bluetooth-Wireless/dp/B088ZH5CGH
if you want something a little more substantial you might consider this
https://smile.amazon.com/Mackie-Thump12A-1300W-Powered-Loudspeaker/dp/B073V7MKQZ
Here is what I would recommend.
mics
https://www.amazon.com/innopow-80-Channel-Microphone-Continuous-WM-333/dp/B0749L15PF
mixer
https://www.amazon.com/BEHRINGER-XENYX-1202FX-3-pin-Black/dp/B000J5Y214
speaker(s)
https://www.amazon.com/Mackie-Thump12A-1300W-Powered-Loudspeaker/dp/B073V7MKQZ
cables
https://www.amazon.com/Cable-Matters-6-35mm-Inch-Male/dp/B00KO8VZ1Q
https://smile.amazon.com/Hosa-CMP-159-Stereo-Breakout-Cable/dp/B005HGM1D6
https://smile.amazon.com/Cable-Matters-2-Pack-Microphone-Feet/dp/B00KO8VY4O
https://smile.amazon.com/Anker-Aluminum-Pixelbook-Compatible-Thunderbolt/dp/B07THJGZ9Z
mic covers
https://smile.amazon.com/Handheld-Microphone-Windscreen-Anti-Roll-Device/dp/B07C15R65M
Hello! The short answer is there is no one home karaoke system I'd recommend. Just like buying a car there are many factors that go into picking out something that's right for you. The more info you give us about your specific needs the better we'll be able to help you.
Asking for a recommendation is a common question. I suggest you read at some of the other posts. There is a wealth of information here that can help you figure out what's best for you.
In general you need a TV, a device to play the karaoke music and words, some mics, a mixer, and speakers.
I recommend using the streaming karaoke service Karafun. It costs $7 for two days and $10 for an entire month. They have 47,000 songs in their catalog. Their software runs on many different devices. It's easy to use and has some great features.
Karafun outputs to your TV and your AV speakers. Your home AV speakers are fine for the karaoke music but they're not designed to handle the peaks generated when singing. You could damage the speakers. But this setup gives your half of a decent karaoke system.
So for the other half you typically need mics, a mixer, and powered speaker(s) to sing through. You could also route the music through this half of the system but it's not absolutely necessary.
Here are my posts for two low cost solutions
https://www.reddit.com/r/karaoke/comments/pjqnrd/my_recommendation_for_a_low_cost_home_karaoke/
https://www.reddit.com/r/karaoke/comments/smqble/my_2nd_recommendation_for_low_cost_home_karaoke/
But if you wanted something a little better
For mics I like these
https://www.amazon.com/innopow-80-Channel-Microphone-Continuous-WM-333/dp/B0749L15PF
For a mixer I like one of these. They're easy to use and have good echo/reverb vocal effects.
https://www.sweetwater.com/store/detail/MG06X--yamaha-mg06x-6-channel-mixer-with-effects
https://smile.amazon.com/Mackie-ProFX-Mixer-Unpowered-6-channel/dp/B07XC3BHTL?th=1
For a powered speaker(s) there are a lot of options and the right solution depends on your needs.
Speakers
If you want an excellent small profile speaker and are willing to give up having a separate mixer then this speaker with mics is all you need. I've used this speaker and was blown away how good it sounded for karaoke
https://smile.amazon.com/Bose-Bluetooth-Speaker-System-Battery/dp/B078RT7VRZ?th=1
If you're looking for a single speaker, I don't have hands-on experience with it but this speaker has all the features I'd recommend and its's well reviewed.
https://smile.amazon.com/Mackie-Thump12A-1300W-Powered-Loudspeaker/dp/B073V7MKQZ
If you want to use two speakers in your setup I recommend Rockville. I have them and they work well. For home use I'd probably recommend the 10" because it's a little more manageable size but I like the 12" version as well.
https://smile.amazon.com/Rockville-RPG15BT-V2-Bluetooth-Additional/dp/B088ZH5CGH
Here is another style of Rockville that uses similar electronics.
https://smile.amazon.com/Rockville-BPA10-Professional-Powered-Bluetooth/dp/B01C564PZ2?th=1
IMO you definitely need a powered speaker. As you found out the sound bar is not designed for singing. And the mics you have don't have the best audio quality.
Focusrite Scarlett 2i2 and Aspen Spirit mic are fine for recording but not the right equipment for live karaoke.
If you have a Shure wireless mic you need a Shure receiver.
Here is what I recommend
https://www.amazon.com/innopow-80-Channel-Microphone-Continuous-WM-333/dp/B0749L15PF
https://www.amazon.com/Yamaha-MG06X-6-Input-Compact-Effects/dp/B00I2J4V5G?th=1
https://www.amazon.com/Mackie-Thump12A-1300W-Powered-Loudspeaker/dp/B073V7MKQZ
You don't need two powered speakers if you run the karaoke music in mono.
That's an interesting question. Being able to spend more money opens up more options. Based on my hands-on experience and what I've read from others, here are my recommendations.
Mics - I've had these for two years and I still love them.
https://smile.amazon.com/innopow-80-Channel-Microphone-Continuous-WM-333/dp/B0749L15PF
Mixer - I don't have these but they have the features I recommend. I like using a separate mixer because you can locate the controls in a more convenient location.
https://smile.amazon.com/Yamaha-MG06X-6-Input-Compact-Effects/dp/B00I2J4V5G
https://smile.amazon.com/Mackie-ProFX-Mixer-Unpowered-6-channel/dp/B07XC3BHTL?th=1
Speakers
If you want an excellent small profile speaker and are willing to give up having a separate mixer then this speaker with mics is all you need. I've used this speaker and was blown away how good it sounded for karaoke
https://smile.amazon.com/Bose-Bluetooth-Speaker-System-Battery/dp/B078RT7VRZ?th=1
If you're looking for a single speaker, I don't have hands-on experience with it but this speaker has all the features I'd recommend and its's well reviewed.
https://smile.amazon.com/Mackie-Thump12A-1300W-Powered-Loudspeaker/dp/B073V7MKQZ
If you want to use two speakers in your setup I recommend Rockville. I have them and they work well. For home use I'd probably recommend the 10" because it's a little more manageable size but I like the 12" version as well.
https://smile.amazon.com/Rockville-RPG15BT-V2-Bluetooth-Additional/dp/B088ZH5CGH
Here is another style of Rockville that uses similar electronics.
https://smile.amazon.com/Rockville-BPA10-Professional-Powered-Bluetooth/dp/B01C564PZ2?th=1