This is $1.1 rebuy at Tiger after add-on period.
Opp is 34/7, 65 hands.

The problem is that there are no draws he could raise here with. But on the other hand I frequently see people raise hands of middle strength like TP in cheap tournaments.

(150/300 blinds, 30 ante) No Limit Hold'em Tournament, 9 Players
Poker Tools Powered By Holdem Manager - The Ultimate Poker Software Suite.

SB: 6,741 (22.5 bb)
BB: 4,757 (15.9 bb)
Hero (UTG+1): 8,378 (27.9 bb)
UTG+2: 4,797 (16 bb)
MP1: 11,820 (39.4 bb)
MP2: 7,906 (26.4 bb)
MP3: 10,410 (34.7 bb)
CO: 5,460 (18.2 bb)
BTN: 7,326 (24.4 bb)

Preflop: Hero is UTG+1 with K Q
Hero raises to 600, 6 folds, SB calls 450, BB folds

Flop: (1,770) 2 8 Q (2 players)
SB checks, Hero bets 885, SB raises to 3,270, Hero - ?

Good for him/her if he/she has us beat, but there no way I am folding this.

openfold preflop.
As played gii.

2cents on why this is a openfold:
KQ does great postflop in non3b/multiway pots cuz it has strong pair value vs a wide range and good two pair+value to play big pots. Also does fine multiway.
Here you are not likely to get into a multiway postflop spot given stacksizes and are more likely to face 3bjams which you can't call cuz you block combos you crush (like high broadways) and at best you face a weak aces. So its a r/f even vs a wide 3brange. Into 8 players the risk/reward is just bad. So fold and raise a tighter range (I would open 99+/AQ).
The odds are just against you to win a small pot a big% of the time and you can't win a big pot since no one has much chips.
Totally fine to raise it into 4-5 players tho and a good open early when everyone has 100+ BB and they call too wide preflop.

And obv that ^

The open is not good.

Do you really fold AJo here?
So I understand with no ante in the game you open even narrower? Like JJ+, AK?

I would call down post

fold pre