Bi-Directional MOSFET level converter problem
If you approach this as an analog issue, it will make sense. Rather than LA, use scope and Vgs(th) must be &lt;=1V, ignoring tolerance (3.3 -Vf)/3= 1V.
Rds(on) is always rated well above Vgs(th) is the short answer, since Rds is very high at threshold.

usually Vgs = 3x Vgs(th) is adequate for low R , here maybe 2x into 10k.
Why Vf? look carefully at Vol path to AVR... from right to left.