Program an Arduino Uno with an Atmel ICE
Your Ardunino is stuck in debugWIRE (The debug wire fuse is set). Here is a tutorial on how to get it back to programming mode.

In the tutorial I am using the AVR Dragon with AS6, but the process is the same with Atmel ICE and AS7.

You have to be in Debug Mode to disable debugWIRE. While in debug, Click Debug>Disable Debug Wire and Close.