The Atari800 emulator only supports paddles using mouse emulation.  So what you need to do is put the iCode device into mouse mode. 

1. Press Green+Red buttons at same time to bring up the devices menu
2. Press White for other menu
3. Press blue to toggle mouse on and off. make sure its on
4. Press yellow twice to get out of the menu system

Now, on the Atari800 emulator while running super breakout:

1. Press F1 to bring up the emulator menu. 
2. Select "Controller Configuration",
3. Change "Mouse Device" to paddles
4. Change mouse speed to 6

That should do it.

However, I am attempting to use the paddles in the Atari 800 emulator (on Linux -- Ubuntu 24.04). When playing Super Breakout, I can start the game. When I move the paddle, the ball launches, which is a sign that the paddles are partially recognized. However, the on screen paddle doesn't move.