Issues with finding Atmel Ice Program/Debugger

Oh right, yeah that won’t work. PlatformIO does not support debugging via an Atmel-ICE out of the box that way. The supported upload and debug options are listed in the documentation of the board.

https://docs.platformio.org/en/latest/boards/atmelavr/nanoatmega328new.html?highlight=nanoatmega328new#debugging

It not being supported out of the box mainly stems from Atmel refusing to release tools that open a standard GDB server and something that does not depend on AtmelStudio.

You can use the Atmel-ICE for upload since AVRDude supports it, but for that you need to set upload_protocol to the programmer id value that AVRDude expects. That should be atmelice_isp. See How to setup Atmel-ICE to program an ATmega328 on PlatformIO with VSCode on Windows 10 for full config.

You can also use experimental Atmel-ICE debugging through the avarice tool. See CLion / Avarice debug not working for config and AVaRICE download | SourceForge.net for a binary download.