Declarer took the openlead in the closed hand with the K, went to the A of clubs and ruffed a club, then to the A of hearts, and back to the K & Q of hearts with the evident intention of sluffing that diamond. But West was out of hearts himself by the third round and ruffed with the deuce, which suddenly became the most powerful of cards at the table. Oh, declarer can overruff, to be sure, but when he overruffs, he's not sluffing and is now facing a diamond loser he cannot avoid. Done in by the deuce of spades!
What are the odds for a 5-2 heart split? I hope you didn't really ask, for it doesn't matter what they were or are. Declarer doesn't need to touch hearts before trump are all out. He has good communication. And he started out right, apparently intending to establish the 5th club, banking on a 4-3 split of the outstanding clubs. Indeed, you might note that had clubs not behaved, declarer had a last chance in a finesse of the 10 of hearts. But no matter.
Declarer did everything right up through the A of hearts. (I woulda preferred using a trump re-entry, but let's say that is pretty safe. Just ruff one more club and declarer would've known that clubs were splitting 4-3. Just one more club lead. Back on a spade to the 10, noting the 2-2 split, and now declarer can ruff a fourth club with the closed hand's last spade, return to dummy and the hand now hardly needs explication. Declarer can now run three hearts, sluffing a diamond in dummy and claim a good dummy, with the last club and the A of diamonds.
How can people bid so well and play so poorly? Maybe his partner bid the hand up to 7 spades. Dunno. But I once mentored a novice whose bidding never once made me go Eeek, but whose handling of the cards often did. I reflected, are these two discrete talents? Each requiring a different cast of mind? After all, if one is good following the strictures of point count and distribution, his bidding should stay pretty much in the ballpark. But in playing the cards, one has to have the mind-set of capturing, of getting the maximum value from the hierarchy of the cards dealt, and maybe that's a different sort of talent. Dunno. After all, we pretty near always think of a fellow player as pretty good in both, or a duffer in both.