This is a known problem where there is some sort of conflict between the most recent versions of the software and the Wattbike Atom. When Zwift accidentally enable steering on the Atom (when it wasn’t meant to go live yet), something broke with regards to being able to see other riders or other riders seeing you.
I’ve had exactly the same thing happen to me - see this thread: Zwift Steering on Wattbike Atom Spiral of Death - #24 by Steven_Robinson