I looked into this a little bit, and I don’t think けっこう is reserved for only positive sentences (like @kizzlesully said), but I do think it is pretty rare. I had a very hard time finding any examples where this can be seen, but here are a couple:
これはけっこう間違いないなと思いました
これはけっこう焼けなかったほうかなと思っているのと
However, in regards to your struggle here, Bunpro should make it fairly clear which one it wants through the English hints (too much - すぎる, quite - けっこう), but it does help to understand the slight nuanced differences between the two.
Here’s the definition that けっこう takes on in this context:
完全ではないが、それなりに十分であるさま。
(basically, “plenty”)
I want to preface, that I personally do not think that けっこう can be used in this sentence. To me it sounds too much like “quite not funny” in English (note: 面白くない is not “unfunny” but rather “not funny”, which makes a difference). That said, I’ll still explain the nuance here, assuming it does work. When used in this sentence, we get a meaning similar to: “That joke was quite unfunny to me” - it wasn’t completely unfunny, but it was for the most part, unfunny. If I say, “ah, that was quite funny” it means it was sufficiently funny. It wasn’t the best joke I’ve ever heard, but it was plenty funny for me to enjoy it.
Now, if we look at the definition for すぎる in this context we get:
その事柄の程度・限度を越える。
When used in this sentence, we get a meaning similar to: “That joke goes beyond what is unfunny” (essentially: The degree to which I consider to be unfunny has been crossed - it’s not funny at all (and beyond)).
While they are fairly similar in what they’re portraying, there is a nuance to them that does change the meaning. One shows complete disinterest in the joke as it’s gone past a limit of something (すぎる) while the other is used to mention the lack of funniness - it’s not necessarily over a limit, but whatever it’s modifying is “plenty”.