You can withdraw, ie you send your bitcoin to the atm and it gives you cash, which would be useful if you wanted to cash out from whatever illicit activity you chose to use bitcoin for, if not for KYC laws and the fact you have to enter your social security number

So since they offer the same service as an exchange there only really used by people who want to use crypto but don’t know how to use an exchange, ie people getting scammed, who probably aren’t withdrawing.