Daraus wird nichts.

English Translation

Forget it!

Can someone explain this a bit? I read this as ‘Out of that becomes nothing’. Does that mean that something is a non-starter?

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Your literal translation is correct, but maybe it helps to translate it as
That’s not going to succeed. or That’s not going to happen.

So basically it means it’s not worth continuing (if an attempt is ongoing), or to start or even to hope.
So yes, non-starter is pretty fitting.

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