Assuming $|\phi^+\rangle = |00\rangle+|11\rangle$ and $|\phi^-\rangle = |00\rangle-|11\rangle$ we compute
$$
c = \begin{pmatrix}
1 & 0 & 0 & 2\lambda-1 \\
0 & 0 & 0 & 0 \\
0 & 0 & 0 & 0 \\
2\lambda-1 & 0 & 0 & 1
\end{pmatrix}\tag1.
$$
A useful property of the $d^2\times d^2$ Choi-Jamiołkowski matrix is that each of the $d^2$ $d\times d$ blocks represents the action of the channel on the matrices from the standard basis of the space of $d\times d$ matrices. In our case $d=2$ and
$$
c = \begin{pmatrix}
T\begin{pmatrix}1&0\\0&0\end{pmatrix} & T\begin{pmatrix}0&1\\0&0\end{pmatrix}\\
T\begin{pmatrix}0&0\\1&0\end{pmatrix} & T\begin{pmatrix}0&0\\0&1\end{pmatrix}
\end{pmatrix}.\tag2
$$
Now, recall that the action of the phase damping channel
$$
\mathcal{F}(\rho) = p\rho + (1-p)Z\rho Z\tag3
$$
on a density matrix $\rho = \begin{pmatrix}\rho_{00}&\rho_{01}\\\rho_{10}&\rho_{11}\end{pmatrix}$ is
$$
\mathcal{F}(\rho) = \begin{pmatrix}
\rho_{00} & (2p-1)\rho_{01} \\
(2p-1)\rho_{10} & \rho_{11}
\end{pmatrix}.\tag4
$$
Substituting $\begin{pmatrix}1&0\\0&0\end{pmatrix}$, $\begin{pmatrix}0&1\\0&0\end{pmatrix}$, $\begin{pmatrix}0&0\\1&0\end{pmatrix}$ and $\begin{pmatrix}0&0\\0&1\end{pmatrix}$ into $(4)$ and comparing against $(1)$ and $(2)$, we see that $c$ is the Choi-Jamiołkowski matrix of the phase damping channel with $p=\lambda$.
Consequently, $(3)$ is the Kraus representation of the channel with Choi-Jamiołkowski matrix $c$. The channel shrinks the equator of the Bloch sphere, see e.g. figure 8.9 on page 377 in Nielsen & Chuang. Finally, when $\lambda=\frac{1}{2}$ then the output of the channel is separable regardless of the input.