FWIW: My gut says that the Zwift devs are doing something not quite correct … no other app that I’m aware of, on ATV, exhibits this kind of behavior.
+1 here. First time after latest Zwift update so hopefully they will get it fixed soon.
Also having same trouble, Apple TV with older 720p display. Kind of annoying, hope they fix it soon, a lot of us use older TVs as a dedicated Zwift station.
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I installed the latest update this morning: 1.0.41097 but still it’s not fixed 
Got the following reply from the support team which doesn’t give me any hope it will be fixed soon…
Thanks for the reply!
While I’d like to respond with favorable news, I’m currently not able to.
Given the nature of this type of fix I’m not able to give a timeframe on when it will be patched. I also don’t have any further information on the issue at this time.
I’m sorry I couldn’t be of more help.
Same problem here very frustrating, it’s the only app doing this
I have the same problem. Cannot figure out how to fix it…any help would be appreciated…I have tried all the resolutions but none work. The strange thing is that when zwift starts up - the initial blue screen with the z it is full screen but when the user screen comes up it goes to the 3/4 bottom left hand side as shown in your pic…
As mentioned above, Zwift is aware of the issue and working on a fix.
Hopefully it will be released soon.
Best of luck to everyone! I’ve thrown in the towel on this issue and decided to replace my Apple TV with a re-purposed gaming PC I had laying around. The ATV is a fantastic device for Zwift at its price and convenience level… but oh boy, the graphics and performance are substantially more impressive on a PC. I wish I had switched sooner.
And it has no issues with my 720p plasma display. 
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Exact same issue for me. This TV is only used for Zwift so I look forward to a fix. This only happened after the last update.
Another update from Zwift …
I checked back with our Developers, and it doesn’t look like the fix will be out in the next update by the end of the month. Apologies for my initial speculation. It doesn’t seem like the fix is going to be as simple as previously expected, so there’s a bit of delay in getting it out.
Our Devs are still working out the fix, but I’ll be sure to check back next week and see what the status is then. I’ll write back sometime next week and update you on the fix and hopefully when to expect it.
Looks like the latest update has a fix. Game Update: Oct 29, 2019 - #2
Fixed screen-size issue due to an Apple change in tvOS 13 on certain Apple TV’s, when used with 720p televisions
I’ll be checking it out tonight.
New version works great with my 720p TV running at 1360x768 resolution.
Problem solved.