Can Someone Help me to Correct my shortcode for displaying a category?

I think I have to pass parameter of shortcode, but how I do

Yes, that’s correct, and you already are passing the parameter to your shortcode when you do [arts-list type=10] — although you should enclose the parameter value in quotes, i.e. type="10".

But the $atts in your shortcode function is not defined before the shortcode_atts() is called, so the function should be defined as follows:

function diwp_create_shortcode_arts_post_type( $atts )

And because the function is already parsing the parameters which are stored in the $atts array, then you just need to use the parameters in your tax_query (i.e. taxonomy query) clause:

'tax_query' => array(
    array(
        'taxonomy' => 'Types',
        'field'    => 'term_id',
        'terms'    =>  wp_parse_id_list( $atts['type'] ),
    ),
),

Note: In the above example, I used wp_parse_id_list() so that we can pass a list of term IDs, e.g. [arts-list type="10,11,12"]. But more importantly, make sure the IDs point to valid terms in the Types taxonomy.