Does this SQL code follow common best practices?

No.

SET @query = N'SELECT * FROM TableName WHERE COALESCE('+ @query +') IS NULL';

1. It is common best practice to not use 'Select *' in production code. One's apologetics might include 'Well, this is dynamic code ...' and if you're okay with that (or the customer is) then carry on.

2. I would use a Socratic method and ask what is the purpose of returning columns you know are null? Why wouldn't you write the query to only return the PK if all other columns are null?

How is the quality of this code?

It looks is fine.

I would suggest if you want a better evaluation, to provide sample objects / DDL to allow others to run it locally. Perhaps to evaluate the query plan.

Does this SQL code follow common best practices?

No.

SET @query = N'SELECT * FROM TableName WHERE COALESCE('+ @query +') IS NULL';

1. It is common best practice to not use Select * in production code. One's apologetics might include 'Well, this is dynamic code ...' and if you're okay with that (or the customer is) then carry on.

2. I would use a Socratic method and ask what is the purpose of returning columns you know are null? Why wouldn't you write the query to only return the PK if all other columns are null?

How is the quality of this code?

It looks is fine.

I would suggest if you want a better evaluation, to provide sample objects / DDL to allow others to run it locally. Perhaps to evaluate the query plan.