How to reproduce:
1. Open the attached project "1523411 Atlases dont appear to be respecting padding.zip"
2. Enter Play Mode
Expected results: No overlapping issues in the image
Actual Results: The image contains artifacts from other sprites
Reproducible with: 2021.3.27f1, 2022.1.0a6
Not reproducible with: 2022.1.0a7, 2022.3.1f1, 2023.1.0b19, 2023.2.0a18
Reproducible on: Windows 10