The line comes from Thomas and Friends, the long running children's series about engines on the island of Sodor, and is spoken by James, the red tender engine known for his pride and short temper. Clips of dialogue from the show have been lifted for years as a meme reaction clip, because the earnest delivery contrasts with adult online humour. This quote survived on soundboards and in short edits for the same reason: it is instantly clear, needs no setup, and can be dropped into almost any failed joke.
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James from Thomas and Friends snaps shut up, it's not funny in this short clip, used as a fed up reaction when a joke stops being funny for everyone involved.
James the red engine delivers the line in an annoyed, scolding tone, insisting that whatever just happened is not amusing at all. The clip is just the quote on its own, with no build up, so the frustration lands instantly. It works because the delivery sounds genuinely fed up rather than playful, turning a children's show moment into a blunt put down. Viewers hear it as the exact point where laughter tips into irritation, which makes it useful for cutting off a joke that has gone too far or landed badly.