That was by design as the Atmosphere folks didn't want to encourage piracy. In reality almost everyone who uses Atmosphere pirates so it's pretty silly to not add full USB support as XCI loading was developed and worked years ago.
To manually...
A bummer but what can you do!
Now if I could only get it to be able to see a local hard disk to install games from.
That's frustrating me as I can't get it to recognize any usb drive (flash or a hard disk).
I really didn't like playing online against other people always felt like I was being matched against children... Sorry it's your 7th birthday but I guess I'm supposed to mow you down anyway...
I have reflexes a cat would be jealous of and a near psychic ability to read people, makes online play feel incredibly unfair. Ironically I have been booted from online servers for being a bot.... Or aim assist lol