Was Villain Right?

I'd be tempted to fold the flop. You don't have odds for the gutshot and the SB is saying pretty clearly your Ace might not even be good.

I get why you raised the flop, I might have done the same, but in hindsight I think you had to let this go.

The turn is a clear fold. Ace outs are questionable, so the odds just aren't there to call.