My idea for the race's backstory:
After the machines broke down, the Atlanteans mutated into lizards due to the spilled fuel.
And in the Atlantean city, as an additional building, there could be a broken magic pump that increases the growth rate of the Atlantean lizards.
How does that sound?
It would be better if you came up with a name for the Atlantean commander and a racial ability, knowing your imagination, you could easily come up with them.