If I understood it correctly, you want groups of 63 rows supposing they are consecutives and then select the first row for each group.
WITH T AS (
SELECT
ID,
PeriodBegin,
PeriodEnd,
ROW_NUMBER() OVER(PARTITION BY ID, ((PeriodBegin - 1) / 63) + 1 ORDER BY PeriodBegin) AS rn
FROM
#Intervals
)
SELECT
ID,
PeriodBegin,
PeriodEnd
FROM
T
WHERE
rn = 1
ORDER BY
ID,
PeriodBegin;
GO
This expression ((PeriodBegin - 1) / 63) + 1 assign an incremental group number (63 rows each group) and the ROW_NUMBER enumerate the rows partition by (ID, grpnum). The rest is to select all rows where rn = 1.
I am afraid I am taking it too simple.