The phrase isn't used commonly but is recognized by most native speakers. When the two scarves were similar, my grandmother said it was much of a muchness which to choose.
Pro Tip 2/3
Conversational Tone
Use this phrase in casual conversation; it may sound odd in formal contexts. Deciding where to eat? Both places are much of a muchness, really.
Pro Tip 3/3
Indecisiveness
Ideal to express that a choice is hard because options are so alike. These two colleges are much of a muchness to me. I can't decide!