Why can’t Mario enter the pipe for A Traditional Festival?

Solution 1:

When Mario is standing on top of a tube, you need to press down to go down the tube (in 3D mode you need to crouch instead).

In this case, it's the other way around: To go up the tube, you need to press up. This obviously only works if Mario is in contact with the tube, that's where the jumping comes in.

So in short:

  1. Jump towards the pipe, as seen in the video you're linking.
  2. Make sure you are pressing up when you make contact with the pipe.

Luckily, this doesn't involve any timing at all, so you can simply keep the analog stick pressed upwards while you jump. If Mario doesn't climb up the pipe, try moving him a bit more towards the center of the pipe.

Solution 2:

Hold up on the joystick, there are several other 8 bit mini games that have an upward tube. (There's one on the moon)