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Atlas still shows all users that are deactivated. One work around is to make sure all deactivated users are removed from all groups...this is very tedious. Even doing that I still have some users who show up in the "People you work with" section even though they don't show up when selecting "browse everyone"
This is very frustrating as people are actively requesting those deactivated users be removed!
I agree, deactivated/unlicensed users should not be shown under Teams. I had a situation were the user deactivation push was turned off between Okta and Atlassian for unknown reason so now we have 200+ users that were off-boarded still showing up under Teams.