My unfounded theory: As with most miscommunication and conflict, the 'conflict' between 'dad' joke tellers and youthful audience is because the two parties are using the same thing (jokes) for different purposes. To describe people very, very generally:

'Youth' are displaying their social capacity - their humor, their communication ability, their ability to navigate social situations, their ability to play, etc. They are trying to show how clever they can be in order to attract others, and maybe due to living in competitive social situations (school). The level of funny and socially cleverness is the whole point. The audience is trying to find fault, to a degree.

'Dads' and older adults of all types are trying to bond and model loving behavior, especially with the youth with whom the older adults are rarely competing. The audience is presumed to be trying to bond too - they are trying to find the love and enjoyment. A dumb joke adds to the humor, because now the teller becomes a target of laughter, and models vulnerability and trust.

When the 'dad' tells a dumb joke, the two parties understand it completely differently. One thinks or says, 'Oh my god, that's so embarrassing!'. The other thinks, 'Yes, you get it! :D'