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It appears it is still there. AMAT is the Palermo City Transportation Agency.

This is the timetable. Search for NAVETTA (shuttle) ARANCIONE
https://www.amat.pa.it/percorsi-e-orari/

This is confirmed also in this tourist website
https://www.palermoviva.it/navetta-gratis-palermo/

A nicer map here
https://www.simgbm.it/foto-articoli/108/varie/Free%20Shuttle%20Map-ca098baa70cb5191d7dde96d5ef53c4d.pdf

Not sure if the maps are the most updated, but the service appears to be there.