Two-dimension stepper control with potentiometers

I don't see any problem in the code. If you change:

#define XPOT_PIN           A0
#define YPOT_PIN           A1

to

#define XPOT_PIN           A1
#define YPOT_PIN           A0

Does the problem move to the X axis? If so, that would indicate a hardware problem with the pot on A1