During fractional CO2 laser treatment, hairs around the treatment area are indeed singed. However, fractional CO2 laser treatment does not damage the regenerative parts of the hair apparatus so new hairs will grow eventually.
The regenerative parts of the hair apparatus are located about 4mm below the skin, while fractional CO2 penetrates up to 2mm below the skin.
The likelihood of permanent damage to the hairs after fractional CO2 laser treatment is therefore highly unlikely.