This room would not function well as a living /family room given the size of dining table you are proposing.

The given layout is a non-starter. Even with just the furniture, the room is far too full. Add in the 10 dinner guests and there won't even be space to move. People need circulation space and empty space to feel comfortable. They need to be able to push their chairs back and stand up without hitting another chair and having to sidle past others or climb over 3 chairs and vault the table. People sitting on a couch do not want to be staring at a blank wall - or a TV - less than 2 feet away.

If you remove the sofa altogether, you can probably seat 10 for dining. You may want to consider a big round table as it would fit the space better.

If you must retain seating, I'd try small club chairs on casters as they can be moved. You will also need to combine the island and table (i.e. no island seating). I'd suggest there's little sense in island seating when the table is 4 inches away. Also, the island is very cramped for dining. The two middle seats have their eating area so obstructed by the sink there is not even room to set a plate down. Anyone working at the sink would inevitably splash those diners and their food.

I'd recommend getting help from a kitchen designer.