Why not get a formica veneer for the table? That would last forever. Maybe you could even order one in a custom size for your table.

I'm not sure I would cover it in fabric. I have two tables that I made from plywood sheets and after sanding, I just painted them. I did a couple coats and then spray coated them with a clear coating. I used a spray because I wanted to do several very light coats to build it up. I have used them for years and have no problem. I now use one for my craft table and have a very old (30+ years) cutting mat that works great for the measuring lines when cutting out foamcore and balsa wood. The fabric area one I lightly sanded a few years ago and sprayed one more clear coat on it. And I use this area almost every day - no problems. No matter what you decide to do, you do not have to use mod podge or wood glue for that matter. Any white glue will work and I almost always water it down. This applies to a decoupaged area or when I am working on my fairy/gnome houses.

We repurposed a table by gluing plywood to top of table. It is untreated and I just put my cutting mat on top of it. The mat doesn't slide when I cut.

My husband works with wood a lot. He makes rifle magazine loaders that get a lot of abuse. He found a finish that beats anything. It is called a Spar finish, and is made by Helmsman. We have used both the spray on and the liquid. The stuff is made to be used on the wood parts of boats, so it has to be tough. His demo loader has had thousands of rounds put through it and not a nick or scratch any where. He also waxes them with paste wax to protect the surface even more. One can would probably do what you need. And it runs between 8 and 10 bucks depending where you buy it.

What about Formica? My cutting table is made of plywood covered with a sheet of Formica.
The following is just an example of different colors.

https://www.lowes.com/pl/Kitchen-cou...hen/4294735648