Stick with a versatile 3-seat sofa and two chairs for the living room. You'll need a smaller table. Generally, you need 3' of walk space all around it so you can pull out the chairs and sit down. You might do better with a bench and 4 chairs to save space.

The nice thing about the L-shaped living dining room arrangement is that for special occasions when you want to have more people at a sit-down meal, you can expand into the living room temporarily. So I would suggest you buy a dining room table that seats 4, but has leaves that can expand it to seat 6 or 8. That dining area is pretty small, but you don't necessarily have to have the four chairs around it all the time. If reasonably comfortable, you could use two of them as additional side chairs in the living room. This kind of table will still be usable when you eventually move into a larger space.

Where are windows and balcony access on the floor plan?

If you don't have windows or overhead lights in the living room, plan on floor lamps, table lamps and even an uplight or two to light up dark corners.

I used to live in a duplex with pretty much a mirror of that configuration. Did the living room furniture layout diagonally, which solved spacing/pathway issues. And it still felt off, but that was fixed by using floor/table lamps instead of the overhead.

Definitely don't do a sectional - that'll dominate and make it harder to move around.