Do the Publication Retraction impact on Co-authors
Yes, it is possible that this will affect you unless you have a way to clearly distance yourself from the misconduct. Of course, if the retraction, etc. isn't especially public then it is possible no one will notice. 

Being a student now is both a hinderance and a help. Since you are at the very beginning of your career you can likely validly claim that you were blindsided by superiors, being a bit naive yourself. You aren't expected to be as sophisticated as a professor would be. 

On the other hand, I suspect that it is only in seeking your first position that you would need to deal seriously with it. Once you have your own position you are building your own reputation. But you will, likely, be questioned on it and need a good, complete, and valid response. But I suspect that if it is reasonable, then it would be accepted by most people/places.