AVRISP mkII can't connect with target when using an AVR on a breadboard
It will of course fail to detect the target voltage, as you have left the VCC pin of the ISP connector unwired.  Connect it to your ATmega's supply pin.

Leaving that signal unwired works for simple homegrown programmers (Arduino as ISP, etc) which drive signals directly from MCU pins at whatever level the MCU implementing the programmer natural drives.  But more sophisticated programmers have output drivers that adjust to a range of target voltages, and so need to be fed the target voltage as a reference input.