Many religious people think atheists are incapable of morality
Some but not all.
Jesus has the parable of the good Samaritan for example. The religious man (The Pharisees) leaves someone on the mountain to die, while the less-religious Samaritan saves him.
In fact, a lot of Jesus’s preachings are about the outsider. Ex: Magi were likely Zoroastrianism, etc. Etc.
There are many warnings about how Religion can be used for bad in Catholic preaching. Ironically, Evangelicals ignore these parts of the Bible.