Sorry, I should've clarified, that was a rhetorical question. I forget a lot of people aren't familiar with client side vs. server side.
Server-side hit detection is mostly for FPS games with small servers (<20 people) with a high tickrate with companies that can spend enough money and time to make the netcode work properly and servers that can handle it. Atlas has none of those things.
Client-side hit detection (with some server-side checks) is the way almost every modern FPS game deals with hit detection. It's: easier & cheaper to develop, puts less load on the server, and most importantly is far more responsive, reliable, and consistent. But wait, Ark and Atlas isn't really an FPS, it's more of an MMO. Way more people playing on the server and it has a low tickrate. If something small is moving you almost can't shoot it, it's just a guessing game of trying to hit ahead of where it might be moving. You know, instead of just being able to shoot something and actually damaging it, which is easier to code. This was something that many people complained about in Ark and was inexplicably never fixed or addressed. I thought something so simple might have been fixed for the "sequel" but like many people my low standards are just too high.