I've booked countless people on trips to Italy on
AbD, Tauck, Trafalgar, and with a fabulous private tour company that creates custom trips. This is the first time I've ever heard of having to wear long sleeves! Maybe it's one of those "lost in translation" situations. (I married a Lebanese man -- he could do standup comedy with all the ways that he misinterpreted the English language.)
I just pulled up a set of documents from the custom tour company, and this is what they have under "Etiquette" for Italy:
Do not wear shorts, short skirts or spaghetti strap/strapless tops and sundresses while visiting churches.
Do not intrude or cause any sort of disturbance while church services are in progress.
Many churches, museums and art gallerys forbid the use of flash photography and often ban the use of the camera altogether. Always ask politely at the entrance or to the museum or church guard if you can use your camera.
Since 2005, it is strictly forbidden to smoke in restaurants, offices, bars and most public places. Some restaurants may have a separate smoking section, always ask first.
Topless sunbathing is tolerated on non-family and out of the way beaches only.
Bargaining is not appropriate in shops. Bargaining can be practiced at outdoor markets (with the exception food markets).
I know that theirs isn't the final word on the subject, but this
is their business. On the many trips I've taken to Italy and other parts of Europe, I always wore short sleeves (not sleeveless) into every church/cathedral.
I don't think you'll have to repack!
Dotti