Just like determining lower bounds is generally harder than "finding" upper bounds, so proving no solution for this puzzle is not immediate. The instance is easier as N = 4, small size, but relatively harder as each color shows up six times. Of course we are assuming we don't have access to a look-up table of all possible obstacles or "blocks" that can occur for puzzles of this size, otherwise we would quickly find a block. (Had there been a solution then there would be no obstacle and we would have an existence proof for solvable.)
Suppose one half solution (complete thread) takes 1: b-g. Then it is easy to rule out 2:b-g (no choice for 4), 2: r-y (no choices for 3 and 4). Therefore if a complete thread exists in this case we must have 2: g-r. And 4: b-r. And 3: y-y. Btw, this forms a complete thread. Now if a complementary thread has 1: R-Y then it must have 2: B-G. And 4: Y-G, leaving no possible choice for cube 3.
Now if a complementary thread takes 1: G-R then a short check shows 2: R-Y is impossible, leaving 2: B-G. But it is impossible to complete this thread with what is available left on cubes 3 and 4.
Thus, the pair 1: r-y MUST be used in any solution.
So we may assume 1: r-y. Now choosing 2: r-y leaves nothing available for 3. Choosing 2: g-r also leads, after a couple steps, to a dead end. Thus we are left with 2: b-g. There are 4 quick choices to continue this thread to cubes 3 and 4; none of them complete a half solution.
Obviously this particular instance was constructed so that there is no immediate way to determine the answer, namely, no solution. The size of the minimal obstacle was 4. This is typical.
One is tempted to say that puzzles with no solution are harder to determine than ones with solutions. But supposing someone was utilizing a breadth-first search and the puzzle was a stack of monochromatic cubes so that every arrangement led to a solution. Then for large instance sizes (say N = 100) the branching would overwhelm the computer's memory.
For a sophisticated depth-first routine to find (all) solutions quickly of puzzles up to size 100, please Google: Chris Reeser.
Finally in Tutte's 1947 paper he says that the chances of hitting on the solution of the particular puzzle he uses as an example is less than one in 40,000. Due to loops and various symmetries that create multiple solutions the probability is closer to 1/1000. This of course assumes "blind" stacking, whereas many possibilities would be aborted after 2 or 3 cubes if one was paying attention.