Yup, quite so.
Atmosphere as of version 0.8.9 and later releases are confirmed working on the latest switch firmware.
In case you're using the standalone bare bones version of atmosphere (without the Kosmos/Hekate bundle) make sure to get the
signature patches
Not on latest firmware and looking for a way to update and get there perhaps?
I'd recommend you to use
ChoiDujourNX to update your firmware. Before the installation initiates you'll be greeted by a message asking you whether you want to use exFAT or not. If exFAT SD cards are your thing than sure use exFAT but FAT32 is advised to prevent data corruptions.