Good improvement on the posts, thanks. It would be good to improve the schematic a bit, so we understand the corrections made by the black lines.
I recommend working on cleaning up the schematic to make it very clear, and make corrections so it represents what you actually have on your completed board. Are you using atmega328p-au or atmega328pb-au IC on your board? They are different, and I am concerned that you mentioned atmega328p above but schematic says atmega328pb. Are the atmega328p pins 16 and 23 connected together and going to MISO?And are pins 29 and 1 connected together and going to your reset pullup?There should be 2 VCC, 1 AVCC, and 3 grounds, but the schematic does not show all those. I'm afraid you need decoupling capacitors, that may be the root of the problem, but I don't know.