It is a malapropism, which is the use of an incorrect word in place of a word with a similar sound.
People often mishear the phrase "moot point" and mistakenly use "mute point" because "mute" and "moot" sound similar to some listeners, leading to a confusion between the two words.
"Moot point" is the correct phrase. It refers to a matter open to debate, dispute, or uncertainty, or more commonly in the U.S., a point that is irrelevant or not worth discussing.
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