Bad, but less than villainous (3)
I believe the answer is:
ill
'bad' is the definition.
(associated in meaning)
'less than villainous' is the wordplay.
'less' indicates a hidden word (the clue less some of the letters in it).
'ILL' is hidden in the letters of 'than villainous'.
'but' is the link.
(Other definitions for ill that I've seen before include "Seasick" , "'Never speak . . . of the dead'" , "Not well, sick" , "Poorly" , "state, briefly" .)