Even I wouldn't recommend generating your bearer tokens client side if they are actually doing it, but collision thing is a bit far fetched. Any randomly generated UUID like UUID4 has a randomness in space of 2^122(ignoring pre determined bits). For practical purposes this is almost unique, you will need to generate ~2^61 ids for 0.5 probability of a collision happening.
What will that accomplish though? The way he described their auth APIs, you will be able to set an auth token generated by you for an account that you anyway have the user credentials for.