I think that's a bit overstated. You can definitely play it that way, but the super zany style of playing Paranoia really only works for quick one-shots to burn off steam. Both Paranoia Red/Ultraviolet (the newer Mongoose edition) and Paranoia 1e have "red clearance" player's handbooks that give the basic rules for skill checks etc (1e was percentile dice and a skill tree, Mongoose Paranoia is d6 dice pool and a flat pool of skills), and assume you are following the actual rules. The original advice is actually close to how PbtA etc games can be run - the GM isn't beholden to making NPCs act according to the rolls of the dice, or for outcomes of damage etc to be rolled in the open, instead they should choose the most interesting and suitable outcome of an action, but roll dice anyway to keep players in the dark. So, instead of having a full map of a facility planned out, or rolling on random encounter tables, you could just improvise "there's a full squad of troopers down that corridor". But that's basically how a lot of narrative games work anyway, just without the pretense of pretending to roll dice.