What the UGC attribute means
UGC stands for user generated content. Google introduced this value on 10 September 2019 together with sponsored, so that a site could describe the origin of its outbound links more precisely than nofollow allowed on its own.
The test is not the quality of the link, nor the trust the destination page deserves, but who placed it there. If the link sits in an area open to third parties, such as comments, forum threads, product reviews or public profiles, ugc is the value that applies.
The line between the three values is sharp. sponsored marks links that exist because something was given in return: money, goods, services or any advertising arrangement. nofollow is the general value, kept for cases where neither of the other two fits and the site would rather not be associated with the linked page or have Google reach it from here.
One point is often misread: marking a link as ugc does not declare it suspicious. A reader may well cite an excellent source in a comment. The value describes where the link came from, not a judgement on its worth.