Create a slowly changing dimension in SQL Server using SQL query

I have an employee seating table and I have taken a snapshot of dummy data with out sharing the actual data

table data

I need a logic to convert this to this output

output table

How would I achieve this with just SQL?

I have tried few tricks but nothing is working

Here is the code to create the dataset just in case you need it

create table #test
(
    start_date date,
    end_date date,
    emp_id varchar(20),
    seating_type varchar(10)
)

create table #test
(
    start_date date,
    end_date date,
    emp_id varchar(20),
    seating_type varchar(10)
)

insert into #test
select '01-01-2025','01-10-2025','123','abc'
union
select '01-11-2025','01-20-2025','123','abc'
union
select '01-21-2025','01-31-2025','123','def'
union
select '02-01-2025','02-10-2025','123','abc'
union
select '02-11-2025','02-20-2025','123','def'
union
select '02-21-2025','02-28-2025','123','gih'
union
select '03-01-2025','03-10-2025','123','def'
union
select '02-10-2025','02-25-2025','456','def'
union
select '02-26-2025','03-10-2025','456','abc'
union
select '03-11-2025','03-27-2025','456','abc'
union
select '03-28-2025','04-10-2025','456','gih'

Generate island groups using 2 types of row number partitioning

WITH CTE as
(
SELECT *, 
      ROW_NUMBER() OVER (PARTITION BY emp_id ORDER BY start_date) rn,
      ROW_NUMBER() OVER (PARTITION BY emp_id ORDER BY start_date) -  ROW_NUMBER() OVER (PARTITION BY emp_id,Seating_Type ORDER BY start_date) grp
FROM #test
)
SELECT Min(start_date) as Start_date, max(end_date) as End_date, emp_id, seating_type
FROM CTE
GROUP BY grp,  emp_id, seating_type
ORDER BY min(rn)

fiddle