With a call and reraise PF and 8 players, I don't think I'd raise out of position w/AQ, though maybe if just HU against an aggressive button. BUT, you still have to worry about Villian 2.

Turn - check is good. Could've bet but you are unimproved.

River - disastrous. Can't call an AI for your tournament life w/ second pair, two places from ITM. Definitely not w/o a strong read . If you fold you haven't lost too many chips(and should still be a mid-stack, I assume). If you were going to call AI you should've just raised AI.

BTW, if he had K7 looks like a full house to me?