The picture is oversimplified. In fact, pressure decreases with distance along the flow as long as the flow velocity changes with that distance. This is happening outside the pipe, where the liquid beam discharges and starts falling down, because the liquid beam gets thinner with increasing distance from the pipe end.
If $B$ is still inside the container or close to the wall but at such a point of the liquid flow where the flow velocity isn't the final velocity of discharge(such as inside the pipe), then pressure there isn't atmospheric. But if you place the point B far enough from the pipe end, there is a point where the horizontal flow does not get thinner anymore, thus does not change horizontal velocity with distance anymore, and thus the liquid pressure is very close to atmospheric. The derivation of the final horizontal velocity assumes the point B is far enough from the pipe's end so the liquid pressure is atmospheric, but the picture is misleading, since it puts B inside the pipe where that is not the case.