This actually looks like you have an nvarchar with a leading 00 at the start. This is messy, but would work:
SELECT CONVERT(nvarchar(30),CONVERT(varbinary(60),STUFF(CONVERT(VARCHAR(60), 0x003600380032003200330031002D003400,1),3,2,''),1));
This strips out the leading 00 characters, making the value 0x3600380032003200330031002D003400, which is the nvarchar value for N'682231-4'.
It strips the value out by converting the varbinary to a varchar but using the style code 1, this means you have a varchar with the value '0x3600380032003200330031002D003400'; allowing you to perform string manipulations. Then I use STUFF to remove the character and CONVERT with style code 1 to make it a varbinary again.
DB<>Fiddle
Alternatively, you could remove all the null character tuples and convert. This looks way messier as you can't just blanket replace '00' (or rather I don't feel it's "safe" to), so I put the characters into their tuples, and rebuild:
DECLARE @YourBinary varbinary(60) = 0x003600380032003200330031002D003400;
WITH N AS(
SELECT N
FROM (VALUES(NULL),(NULL),(NULL),(NULL),(NULL),(NULL))N(N)),
Tally AS(
SELECT TOP(60) ROW_NUMBER() OVER (ORDER BY (SELECT NULL)) -1 AS I
FROM N N1, N N2, N N3)
SELECT CONVERT(varchar(60),CONVERT(varbinary(60),(SELECT V.SS + ''
FROM Tally T
CROSS APPLY(VALUES(SUBSTRING(CONVERT(varchar(60),@YourBinary,1),(T.I*2)+1,2)))V(SS)
WHERE V.SS NOT IN ('00','')
FOR XML PATH(''),TYPE).value('.','varchar(60)'),1));
This idea might be better though, if some of your values have a leading 00 and others don't. Of course, this solution also assumes the end value is a varchar, not an nvarchar.
0x00is a null character that is interpreted as a string terminator. This is why you are seeing blank strings. Maybe SQL Fiddle strips this out. But the data isn't a valid SQL Server nvarchar encoding either . All the byte pairs need to be reversed0x0036would need to be0x3600to be interpreted as6. If all the characters are from the ASCII set then could just do a replace of0x00to strip it out (using a binary collate clause)