I'm not easily shocked and I'm not a snowflake, I've been in the world too long, but how is that funny on any level, let alone hilarious
Because humour is subjective, it doesn't make you morally superior to those that do find it funny.
Outright racist/sexist jokes have quite rightly been stripped off the comedy circuit, but dark humour will never disappear as its part of human nature.
I didn't find it hilarious, its an old joke, have heard variations by sarah mcmillan, jo brand and the painfully unfunny amy schumer, better versions have been done via Carlin etc
You are not wrong to find it not funny, but you are wrong in questioning why others would find it funny thinly disguised under a mask of being morally superior, which does fall under the 'snowflake' banner, but this thread has already turned into that.