It’s entirely possible to solve this system by an exhaustive analysis of cases along the lines on which you’ve begun, but there’s an easier way. Notice that both equations have a term $|x-1|$. Let’s let $u=|x-1|$ and see whether the resulting system is a little easier to solve. After the substitution the original system
$\left\{\begin{align*}&|x-1|-|y-2|=1\\&y = 3-|x-1|\end{align*}\right.\tag{1}$ becomes
$\left\{\begin{align*}&u-|y-2|=1\\&y=3-u\end{align*}\right.\;.\tag{2}$
The second equation of $(2)$ implies that $y-2=1-u$; substituting this into the first equation yields $u-|1-u|=1\;.\tag{3}$ If $u<1$, then $1-u>0$, and therefore $|1-u|=1-u$, and $(3)$ reduces to $u-(1-u)=1$, which is easily solved to get $u=1$ and hence $y=3-u=2$. Recall that $u=|x-1|$; thus, $|x-1|=1$, $x-1=\pm 1$, and $x=0$ or $x=2$. You can check that if $y=2$ and $x=0$ or $x=2$, then $(1)$ is satisfied.
If $u\ge1$, then $|1-u|=u-1$, and $(3)$ reduces to $u-(u-1)=1$, or $1=1$. This is always true, so every value of $u>1$ leads to a solution. Let’s check that. Let $u$ be any number greater than $1$, and let $y=3-u$. Then $y-2=1-u<0$, so $|y-2|=2-y=u-1$, and $u-|y-2|=u-(2-y)=u-(u-1)=1\;,$ so $(2)$ is indeed satisfied. All we need to do now is solve for $x$ in this case. We have $|x-1|=u$, so $x-1=\pm u$, and $x=1\pm u$. In other words, for each $u\ge 1$ there are two solutions,
$\left\{\begin{align*}&x=1+u\\&y=3-u=3-(x-1)=4-x\end{align*}\right.\tag{4}$ and
$\left\{\begin{align*}&x=1-u\\&y=3-u=3-(1-x)=2+x\;.\end{align*}\right.\tag{5}$
Finally, $(4)$ and $(5)$ can be simplified by getting rid of $u$. Since $u\ge 1$, $(4)$ gives us every value of $x\ge 2$, and $(5)$ gives us every value of $x\le 0$. Thus, $(4)$ and $(5)$ reduce to saying that the solutions to $(1)$ are
$\begin{align*} &y=4-x\text{ for any }x\ge 2\\ &y=2+x\text{ for any }x\le 0\;, \end{align*}\tag{6}$
with no solutions having $0. You can improve a little on $(6)$ by recasting it in terms of $y$: note that both branches of the solution give you all values of $y\le 2$, so you can rephrase $(6)$ by saying that the solutions are all pairs such that
$y\le 2,\text{ and }x=4-y\text{ or }x=y-2\;.$