Eww, dump this pre flop. Out of positon = out of the action, especially with a hand like KQ, reverse implied odds etc.

I don't like 3betting the flop at all. Calling is fine here with the intention of proceeding with extreme caution. Folding flop to the raise isn't that bad. A 14/12/1.7 probably isn't raising you with air that often on this flop and I think it might be a case of losing less by folding what could be the best hand than calling with the worst (or even 3betting!!).

IF you are going to 3bet the flop then the bet needs to be larger, say $2.65.

As played I c/f turn, a guy with these stats is never bluffing the turn and is never calling 2 more streets with a worse hand.