You write:
Alice and Bob independently prepare the Bell state $\Psi^-$. They measure one qubit and send the other qubit to Eve. The joint state of the system is written in terms of the qubit-pair Eve now has on the right side of equation 6 (page 3).
In the paper in the paragraph before equation 6 the authors write (emphasis mine):
In the proposed experiment, two distant observers, conventionally called Alice and Bob, independently prepare two sets of singlets, whose states are denoted as $\Psi^-_A$ and $\Psi^-_B$. Alice and Bob keep one particle of each singlet and send the other particle to a third observer, Eve, who also arranges them in pairs (one from Alice and one from Bob). The three observers keep records specifying to which pair each particle belongs.
Alice and Bob each keep one particle and send the other to Eve. They do not measure it at that stage. The premise of your question contradicts the text of the paper you are citing. I advise you to learn to read more carefully.
Update. I will deal with the rest of the question:
It seems to me this is bogus: given that Alice & Bob measured and collapsed the state, how can we subsequently use the state before those measurements?
While writing this I realized the main jist of the paper may still work if we assume Alice/Bob measured "after" Eve, so Eve did measure on the state in equation 6. Maybe this is just a minor problem with how the concept was introduced? Or maybe I'm missing something bigger, "after" may be problematic here?
Alice and Bob may be spacelike separated from Eve at the time of their respective measurements in which case there is no fact of the matter about the order of the measurements. The results don't depend on the order of the measurements. It is helpful for calculations to have an order in which you're going to apply operations so you might as well apply the Alice and Bob operations first since it makes no difference to the result.
Another thing to note is that the word "collapse" doesn't appear anywhere in the paper: measurements are described by POVMs. Nothing about the results depends on collapse.
Collapse has a number of problems as a way of describing measurement. It doesn't describe repeated, continuous or unsharp measurements all of which appear in measurement theory and so it isn't compatible with how calculations are done in practice:
https://arxiv.org/abs/1604.05973
In many discussions there is no explicit equation of motion for collapse. which makes those discussions vague and difficult to test in detail. Theories that do have collapse built in explicitly don't currently explain the results of experiments on relativistic quantum systems, which are the vast bulk of real experiments:
https://arxiv.org/abs/2205.00568
In quantum theory without collapse when information is copied out of a system, such as a measurement instrument or record in a computer or lab notebook, quantum interference is suppressed: this is called decoherence
https://arxiv.org/abs/1911.06282
Decoherence explains why you don't diffract when you walk through a doorway without invoking collapse.
Bell correlations and other entanglement experiments such as the one above can be explained by decoherent systems carrying quantum information that can't be accessed by measurements on those systems alone: locally inaccessible information. The expectation values of the observables of the measurement result don't depend on the quantum information they contain so that information is shielded from decoherence. That information can only be accessed by comparing measurement results from different systems. The relevant correlations are created when the comparison takes place not at the time of the initial measurement:
https://arxiv.org/abs/quant-ph/9906007
https://arxiv.org/abs/1109.6223