I have attached the schematic
That is not a schematic. It is a physical layout diagram.
That code is so convoluted it is almost impossible to follow. Start again, just output the two bit patterns to switch the two pots into the analogue input port, and output the values accordingly.
What is this supposed to be doing:-
if (abs(analRead[count] - analValue[count]) >= 2) {
analogWrite(ledPin[count], analRead[count]);
analValue[count] = analRead[count];
note that tyhe analogRead returns a number between 0 and 1203 and analogWrite take in a number between 0 and 255, so you can't just read one and output it to the other. Divide the result of the analogRead by four before transferring it to analogWrite.
and what is this?
int threshold = 2;
I can't see threshold making an appearance.
Ground all the unused inputs of the multiplexer.