Not the exact wording but the general premise behind it is a fair counter point in any disagreement. When someone is attempting to gain a higher moral authority, bringing up any hypocrisy is a reasonable thing to do. If pointing out hypocrisy is then dismissed, it is reasonable to assume the other person is not arguing in good faith and therefore should no be taken seriously.
I think it’s a litmus test for if the person is arguing in good faith or criticising with the goal of moral superiority. If a concession can be given by the person being critical after “no you” this shows the criticism really is out of concern and want for improvement rather than simply satisfying the criticisers own indignation.