Open fold this pre UTG. As far as "balancing ranges", you shouldn't have an UTG open limping range that needs balancing really. And you don't need to balance at 2NL.

Calling the $0.07 after MP2 raised, and got 2 callers, is fine.

Raise larger on the flop. If he had a flush draw as you suspected, he is not making a mistake by continuing against your raise, as you are giving him excellent pot odds to call (had MP2 not 3bet for you).