What should we do?
Why - say “Thank You”, of course.
Saying “Thank You” does not say you like the gift it means that you are thanking them for thinking enough of you to give you a gift.
I guess some are more polite than others.
GRACIOUSNESS
POLITENESS
and
CIVILITY
are not all equal, identical terms.
Politeness often faintly masks a lot of squirrely junk in relationships. And everyone knows it. And it just gets wound up tighter and tighter with annoyance to bitterness and resentment.
NO thanks. That’s not Biblical and not edifying—subtracts far more from relationships than even brutal honesty in the long run. But honesty does not have to be brutal. It can be gracious.