It was a long way to support atlases but it is now supported.
Atlases support became better with introduction of decoupled pipeline.
Go to scene Invalid
Here is some sprites, each at its own texture.
Set your project sprite packer mode to V1 Always enabled, and press playmode.
At playmode enter, as sprites gets packed, we can see how sdf is distorted now.
This happens due to compression, regular texture can be compressed, but sdf texture should remain uncompressed.
Unity atlas packs both SDF and regular sprites to one texture, and there is no proper way to pack them into different textures.
We can fix this distortion by simply setting texture compression to None in atlas
And this is one approach to use atlas, however build without compression is not the worst, but really bad idea in terms of size, so we need to figure out something else.
Go to scene Valid_Manual
Start playmode and see that all images remains the same, without distortion.