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@Kenny I think the error indicates that your environment is using pyarrow package which is of version 4.0.0 whereas azureml-dataset-runtime requires the package to be >=0.17.0 but <4.0.0
It would be easier for you to uninstall the package and install a specific version. The list of releases of pyarrow are available here.
Since you are using a notebook create new cells and run these commands.
!pip uninstall pyarrow
!pip install -y pyarrow==3.0.0
Please feel free to mark the answer as accepted if it helps. Thanks.