I don't know. I didn't think it was funny at all, so I'm a bit mystified that the audience laughed at it.
It's kind of strange, actually. I think I started thread not too long ago about people who make some dumb or ignorant statement about the Holocaust - and then have to apologize for it later. Whoopi was the latest example, but there have been others in recent months. And it seemed that this comedian knew in advance that he was playing with fire and went ahead and did it anyway. It wasn't as if he accidentally stuck his foot in his mouth; it was calculated. Maybe he was giving a double dare to "cancel culture."
I seem to remember a quote from Mel Brooks where he says "A man cuts himself shaving, that's tragedy. A man walks into an open sewer and dies, that's comedy." Mel Brooks had a brand of comedy which certainly wouldn't pass muster today. I mentioned Blazing Saddles earlier, but there's also History of the World Part One, where he turns the Spanish Inquisition into a musical comedy number. I didn't think it was very funny, the song sucked, and the whole scene was rather unsettling, to be honest. But it is what it is. Crap entertainment, but I wouldn't make it any more than that.