The phrase became a running gag on the American version of The Office, which ran from 2005 to 2013, where regional manager Michael Scott, played by Steve Carell, repeated it whenever a coworker's remark could be twisted. Although the expression existed earlier as a playground joke, the show turned it into a widely recognised catchphrase in the United States. Clips and quotes spread through early YouTube, GIFs and reaction videos, and it remains a shorthand online for calling out an unintended double meaning.
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Michael Scott saying that's what she said from The Office, used as a quick punchline after an innocent line that sounds like a double meaning.
The clip captures Michael Scott delivering his signature catchphrase with smug, childish delight after someone says something unintentionally suggestive. His voice is upbeat and self satisfied, landing the line like a perfectly timed joke even when nobody else is laughing. The humor comes from that contrast between an ordinary workplace comment and his gleeful attempt to twist it. Played on its own, the sound instantly signals a cheesy double entendre, making any plain sentence feel like a setup for a joke and inviting the audience to groan and laugh at the same time.