YA it looks like to me it was a very poor install, to be honest with you. I've done a bunch of sod installs never kentucky blue grass though, just mostly bermuda and fescue. but things you need to look at and consider is like you were saying: make sure it's getting plenty of water( you should water for 20 min. a day for the 1st 30 days and then anything after that you should only water for 20-30 mins 3x a week, depending how hot it is mabey 4x too much water is a bad thing

) also make sure that there isn't trash and chemicals in the ground, for example beer cans, big pieces of metal/wood, paint that someone could have dumped in the yard, gasoline, i see this problem a lot down here in georgia. Also make sure that the ground is not packed to hard. It needs a good layer of nice LOOSE DIRT for the grass to lay on if the ground is too hard then the soil can't get enough oxygen and nutrients it needs. Also i guess you could talk to your local landscapers and see if they suggest any kinds of fertilizers, it's worth a shot. good luck to ya man, let me know how things turn out for ya.
"Work Smarter, Not Harder"