Comment by adrian_b
SHA-1 is broken for being used in digital signature algorithms or for any other application that requires collision resistance.
There are a lot of applications for which collision resistance is irrelevant and for which the use of SHA-1 is fine, for instance in some random number generators.
On the CPUs where I have tested this (with hardware instructions for both hashes, e.g. some Ryzen and some Aarch64), SHA-1 is faster than SHA-256, though the difference is not great.
In this case, collision resistance appears irrelevant. There is no point in finding other strings that will produce the same validation hash. The correct input strings can be obtained by reverse engineering anyway, which has been done by the author. Here the hash was used just for slight obfuscation.
The perf difference between SHA1 and SHA256 was marginal on the systems I tested (3950x, M1 Pro), which makes SHA256 a no-brainer to me if you're just picking between those two (collision resistance is nice to have even if you "don't need it").
You're right that collision resistance doesn't really matter here, but there's a fair chance SHA1 will end up deprecated or removed from whatever cryptography library you're using for it, at some point in the future.