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The argument of TIMEVALUE must be a string: TIMEVALUE("05:00"). So the formula could be
=SUMIFS(Table110[M], Table110[Date],$B3, Table110[Delay Type], C$2, Table110[Department], $C$1, Table110[Machine ID], "CL1", Table110[Start Time], IF($A3="Day", ">", "<")&TIMEVALUE("05:00"), Table110[Start Time], IF($A3="Day", "<", ">")&TIMEVALUE("17:00"))
BUT!!! This won't work if A3 is not equal to "Day": the conditions for Start Time evaluate to "<05:00" and ">17:00", but that will never be satisfied simultaneously.
You'll have to use SUMPRODUCT (or SUM) instead:
=SUMPRODUCT(Table110[M], (Table110[Date]=$B3)*(Table110[Delay Type]=C$2)*(Table110[Department]=$C$1)*(Table110[Machine ID]="CL1")*IF($A3="Day", (Table110[Start Time]>TIMEVALUE("05:00"))*(Table110[Start Time]>TIMEVALUE("17:00")), (Table110[Start Time]<TIMEVALUE("05:00"))+(Table110[Start Time]>TIMEVALUE("17:00"))))
Finally: a start time of exactly 05:00 or 17:00 will never be included. You may want to use <= or >= for one condition.