As I understand, to achieve a security level of $\lambda$, a hash function's output should be at least $2\lambda$ in length, since the search space is halved for collision resistance.
However, I am also under the impression that for many $\Sigma$-protocols, $128$-bit challenges are used, which result in a knowledge error $\kappa=2^{-128}$ and provide $128$ bits of security against first and second pre-image resistance. However, in this case, the FS transform only provides $64$ bits of collision resistance.
What prompted me to ask this question is the sentence ‘We must also choose the number of parallel repetitions $τ$ so that $\tau \cdot bc \ge 128$, for non-interactive security.’ from 2022/1593. For simplicity, let $\tau = 1$. This claim is not explained nor proven in the paper which suggests that this is a well known result. Geoffroy Couteau also seems to hint at this in one answer. However, in section 2.3.5. of 2022/1153 which Couteau is the first author of, the random oracle range is set to $\{0,1\}^{2\lambda}$ which further confuses me on what the general stance is. Then, in the results (e.g. Table 3), the scheme seems to achieve $\lambda=128$ with the challenge size $\Gamma=129$ and no repetitions.
As I understand, for security in FS, we mostly care about second pre-image resistance, since the inputs to the FS transform are fixed. Therefore, it seems to me like $128$-bit challenges can be used in $\Sigma$-protocols made non-interactive with the FS transform while maintaining a security level of $128$ bits. However, have I misunderstood that? Among other papers, I have gone over Does Fiat-Shamir Require a Cryptographic Hash Function? (2020/915), but it does not seem to treat this particular problem.
It seems to me that either way the answer is out there, but I have not been able to find it. Could someone please provide a concrete resource/citation to back up or refute this problem on how collision resistance impacts the security level of a NIZKP? I would be most appreciative for that.