I'm working on exercise 3.25 on Katz' book (2nd ed):
Let $F$ be a pseudorandom function such that for $k \in \{0, 1\}^n$ the function $F_k$ maps $\ell_{\text{in}}(n)$-bit inputs to $\ell_{\text{out}}(n)$-bit outputs.
(a) Consider implementing CTR-mode encryption using $F$. For which functions $\ell_{\text{in}}$, $\ell_{\text{out}}$ is the resulting encryption scheme CPA-secure?
(b) Consider implementing CTR-mode encryption using $F$, but only for fixed-length messages of length $\ell(n)$ (which is an integer multiple of $\ell_{\text{out}}(n)$). For which $\ell_{\text{in}}$, $\ell_{\text{out}}$ does the scheme have indistinguishable encryptions in the presence of an eavesdropper?
My answer is that it really does not matter: any combination of $\ell_{\text{in}}$, $\ell_{\text{out}}$ and $\ell$ will yield the mentioned security. Why do I think this? well, the proof that CTR mode is CPA-secure is presented in the book as theorem 3.32 and I'm pretty sure it only requires $F$ to be a PRF, with no restriction on the input and output sizes (even though it is presented with length-preserving PRF's), this should answer (a).
For part (b) I think something similar: the proof is not dependent on the message length (as long as it is polynomial in $n$, of course), so fixing a particular $\ell$ should not lead a vulnerability on CPA-security (let alone EAV-security).
Where am I failing? Intuition says this is not the case! for instance, if $\ell_{\text{in}}(n) = 1$ (for all $n$), then the counter can only be increased once and from there it will cycle $${\tt ctr}, {\tt ctr}+1, {\tt ctr}, {\tt ctr}+1,\ldots,$$ which should lead to an attack, doesn't it? The proof should take out these cases somehow, but I just can't see it, it seems to work without even in this case.