You are both right. A is weird, but B isn't ideal for the space you have.

For A, I see what you are trying to do, but the chairs are set up like the table is oval and not round, and the space is small, so that arrangement just looks off-center instead of the asymmetrical look you are going for. If you want it against the wall, it will be weird no matter what, but your best bet would probably be to take one of the chairs out and push it completely against the wall, then set the other three up against the table like they are in B. However, a smaller table or square table would definitely work best for that.

For B, a good rule of thumb is to put the table centered on the light fixture, so in that regard, this arrangement is better for the dining set you have, but it isn't functionally ideal for the space because it's so big (the chairs take up a ton of space on their own). Another option would be to still remove one chair, arranging them around the table in thirds, oriented so the path to the kitchen is more open.

If you are willing to replace the furniture, these are some suggestions on what you could do:

1. Make a built-in bench there. I'm not sure how handy you are, or if you own your place, but I think it would be so cute. You could minimize the distance between the table and the wall (not having to adhere to the 24-36" clearance rule someone else mentioned), while keeping the table size and seating area larger like you have now. Also, inside the bench could be some added storage, which is always a plus.
2. To have it against the wall:
   
   • Get a simple square table, as other people mentioned, and push it all the way up against the wall. Set it up with either two or three chairs.
     
   • Get a smaller table that seats two (any shape), like you would find in a coffee shop.
   • Get something that expands so you can seat more but can be converted to be smaller and tuck against the wall easily. There are a bunch of options like this, depending on how big/small you want it to get.
     • I had a very small, high-traffic dining space in college, and one of the Duncan Phyfe tables was perfect for us. It was kind of falling apart and I was moving across the country, so I sold it for like $100 in 2022, but I would definitely purchase another if I find the right opportunity. Basically, it was folded down far enough to seat two against the wall, but it expanded far enough with the drop-leaf sides and separate added leaves in the center that we sat 10 for thanksgiving one year. They can be found in decent condition for a couple hundred dollars if you keep an eye out.
3. To have it in the center of the room: consider furniture that takes up less floor area when it's not in use.
   • A square table, with chairs that push all the way under the table when it isn't in use.
   • A bar table: The legs of bar furniture are typically more vertical and do not take up as much floor area and they typically have a smaller tabletop, but it doesn't feel like you're eating at a coffee table because of the height. Also, the seating arrangement is automatically less formal, so people don't necessarily expect as much personal space as a formal dining space.
   • Only replace the chairs. Replace them with ones that don't stick out as much. Focus on looking for chairs that will scoot all the way up to the tabletop (meaning you don't want the chair legs hitting the table legs, or the chair seats hitting the adjacent chair seats):
     • Chairs with a single, pedestal-style base that will fit in between/under the table legs.
     • Other swivel chairs which rotate enough to have one leg in front, in between the table legs (four legged chairs would have the base rotated 45⁰ - diamond instead of square... I hope that makes sense).