Played passively I know. Villain saves us a ton of money here?

PokerStars - $0.10 NL (6 max) - Holdem - 5 players
Hand converted by PokerTracker 4

CO: 100 BB (VPIP: 17.35, PFR: 14.29, 3Bet Preflop: 5.00, Hands: 99)
BTN: 57 BB (VPIP: 33.33, PFR: 16.67, 3Bet Preflop: 0.00, Hands: 12)
Hero (SB): 100 BB
BB: 64.7 BB (VPIP: 36.36, PFR: 0.00, 3Bet Preflop: 0.00, Hands: 12)
UTG: 111.4 BB (VPIP: 22.22, PFR: 14.29, 3Bet Preflop: 3.57, Hands: 65)

Hero posts SB 0.5 BB, BB posts BB 1 BB

Pre Flop: (pot: 1.5 BB) Hero has K Q

UTG raises to 3 BB, fold, fold, Hero calls 2.5 BB, BB calls 2 BB

Flop: (9 BB, 3 players) T 3 7
Hero checks, BB checks, UTG bets 5.7 BB, Hero calls 5.7 BB, BB calls 5.7 BB

Turn: (26.1 BB, 3 players) T
Hero checks, BB checks, UTG checks

River: (26.1 BB, 3 players) A
Hero bets 15 BB, fold, UTG raises to 102.7 BB and is all-in, fold

Not sure he can really have many worse flushes here even if he does shove them (unlikely). TcXc you expect to bet turn always, and then it's 8c9c, 5c6c. He can have AA, and some turn lol traps with 77 maybe. Both of those seem much more likely that anything else.

Can 3bet bluff or flat preflop, like the flat better with a potential fish in BB. If reg player, would much rather 3bet.

We can definitely check/raise flop with intention to gii, but think that might be suicide against someone who looks like a passive reg. Too often are we at best flipping. So flatting is best, not donking turn good too.

River is also fine. We block the nut flush, and if villain had like 77 surely he's betting turn. So what bluffs can he have? Not AxKc or AxQc. Maybe JcJx, but that's pretty ballsy. It's nitty, and we're only pinning villain on 4 combos (AA and TT) but folding just seems right. If this is a LAG, my tone probably changes to a call.

Yup folding river.

UTG can also have some A10ss combos, though they are very few and perhaps poorly played in this exact scenario.

I am shrugging shoulders, folding and moving onto the next hand.

Would you say every value hand villain has is poorly played? Even if he chose a better river sizing?

Depending on where we are on the spectrum of value hands, yes.

Checking the turn with Ax10x would be an example of a potential mistake where as many rivers can weaken your holding considerably.

This hand seems totally fine.

The least badly played value hands would be AA or TT i imagine.

AA wouldn't be a mistake when the turn goes 3-ways. And I wouldn't even hate him jamming it since your range is Tx and flushes. It's bad against you since you fold the nut flush, but it's probably great against the field.