Is a resume formatted for ATS really necessary for a graphic designer?

So I'm an entry-level designer. I have a friend who is also a graphic designer and it just so happened that we're job-searching at the same time. I've been reading up a lot and many sources say that I need to format my design to be ATS-friendly. Otherwise, my application won't come through. So I updated my resume and focused on typography.

My friend told me they've been getting interviews. Meanwhile, I noticed that my applications were marked as "unlikely to move forward". When I asked my friend about it and I showed them my resume, they said that I'm getting overlooked because I'm using the boring ATS-friendly resume. Even told me to add a picture of myself. They showed me that their resume is designed with colors and a picture.

Now that I think about it, I did get more interviews when I applied with a designed resume, but I wanted to do something I thought was the "correct" way and it left me with uncertainty. I asked someone else who is not in the creative field and they showed me their resume that's also designed with their picture and all. It got them a job. Like, what? I'm so confused.