Reflexive coequalizers are examples of sifted colimits in a 1-category, and groupoids are examples of reflexive coequalizers. But quotients don't preserve monomorphisms in general.
For example, in the category Set (consideringThis gives a counterexample to question (2)), let in the category Set:
Let $V = S \rightrightarrows S$ denote the trivial groupoid acting on a set $S$ with two elements, and $W = S\times \mathbb Z/2\mathbb Z \rightrightarrows S$ the action groupoid of $\mathbb Z/2\mathbb Z$ acting on the same set $S$. There is an inclusion map $V\to W$, which is injective on both objects and morphisms. But the induced map on the quotient sets is not injective.
I am not sure what this says aboutIn the categorical version$(2,1)$-category setting, but I think it indicates thataccording to this answer of Denis Nardin, one must truncate the simplicial diagram at the 2-simplices to get a sifted casediagram (note that a reflexive coequalizer diagram is very different to the filtered casesimplicial diagram truncated at the 1-simplices).
Edit: I think you canTo get a counterexample to question (1) by taking categories of sheaves on the discrete sets above. by, first takingtake the corresponding 2-truncated Cech simplicial sets of the diagrams above, i.e.
$$S \rightrightarrows^{\rightarrow} S \rightrightarrows S$$
and
$$S\times \mathbb Z/2 \times \mathbb Z/2 \rightrightarrows^\rightarrow S\times \mathbb Z/2 \rightarrow S$$
then takingThen take the category of sheaves (of vector spaces, say) on these discrete sets, equippedtogether with the pushforward mapfunctor on these diagrams of sets (thought of as discrete spaces), to get truncated simplicial diagrams of categories (all of which are direct sums of copies of Vect).
The diagrams are levelwise fully faithful, but the induced functor on the colimit is identified with the pushforward $Shv(S) \to Shv(pt)$ which is not fully faithful.