Can Vision-Language Models See Squares? Text-Recognition Mediates Spatial Reasoning Across Three Model Families

Vision-language models (VLMs) have advanced rapidly, yet they still struggle with basic spatial reasoning. Despite strong performance on general benchmarks, modern VLMs remain brittle at understanding 2D spatial relationships such as relative position, layout, and counting. We argue that this failure is not merely a data problem, but is closely tied to dominant design choices in current VLM pipelines: reliance on CLIP-style image encoders and the flattening of images into 1D token sequences with 1D positional encoding. We present a controlled diagnostic study within the LLaVA framework to isolate how these choices affect spatial grounding. We evaluate frontier models and LLaVA variants on a suite of spatial benchmarks, comparing CLIP-based encoders against alternatives trained with denser or generative objectives, as well as variants augmented with 2D positional encoding. Our results show consistent spatial performance gaps across models, and indicate that encoder objectives and positional structure shape spatial behavior, but do not fully resolve it.

Humans often solve spatial problems by mentally simulating visual transformations. In contrast, conventional vision-language models (VLMs) reason primarily through language. We investigate whether VLMs can solve spatial problems by reasoning with both text and generated visual states. To this end, we introduce WM-VLM, which equips a pretrained VLM with a lightweight world model branch for generating intermediate visual states. Our two-stage training first teaches the model to generate the next visual state and then to use that state for reasoning. We programmatically construct spatial reasoning tasks with verifiable intermediate visual states. These tasks allow us to evaluate how well the model generates visual states and how much it relies on them to answer the question. On 2D and 3D mental rotation tasks, WM-VLM consistently outperforms the supervised fine-tuned backbone, with gains of up to 39.25 percentage points. Ablations suggest that these gains depend on the generated visual states, as removing or corrupting them sharply reduces performance. Together, these results suggest that internal world models offer a promising path toward VLMs that reason in both language and visual space.

Vision-language models (VLMs) achieve strong performance on spatial reasoning benchmarks, yet it remains unclear whether this reflects structured 3D understanding or reliance on statistical shortcuts in natural images. We introduce a representation-level analysis framework that constructs minimal contrastive pairs to measure how spatial axes are organized and disentangled within VLM embeddings. Our analysis across multiple model families reveals a consistent vertical-distance entanglement: models conflate vertical image position with distance, mirroring the perspective bias of natural photographs. This bias produces a significant accuracy gap between perspective-consistent and counter-heuristic examples, and intensifies under data scaling even as overall benchmark accuracy improves. We further show that models with similar benchmark scores can exhibit different internal representations, and that these differences predict accuracy and robustness across diverse spatial reasoning benchmarks. To isolate this bias from evaluation-set skew, we introduce SpatialTunnel, a synthetic benchmark designed to expose spatial shortcut biases by removing common correlations present in natural images. Experiments confirm that the entanglement is model-intrinsic, and that models with well-separated spatial axes exhibit greater robustness, suggesting that well-structured spatial representations lead to more reliable spatial reasoning across diverse benchmarks. Code and benchmark are available on the project page: https://cheolhong0916.github.io/whyfarlooksup.github.io/.