Toward Scalable Verifiable Reward: Proxy State-Based Evaluation for Multi-turn Tool-Calling LLM Agents

Automated evaluation of tool-using large language model (LLM) agents is widely assumed to be reliable, but this assumption has rarely been validated against human annotation. We introduce AgentProp-Bench, a 2,000-task benchmark with 2,300 traces across four domains, nine production LLMs, and a 100-label human-validated subset. We quantify judge reliability, characterize error propagation, and evaluate a runtime mitigation. Substring-based judging agrees with human annotation at kappa=0.049 (chance-level); a three-LLM ensemble reaches kappa=0.432 (moderate) with a conservative bias. Under validated evaluation, a parameter-level injection propagates to a wrong final answer with human-calibrated probability approximately 0.62 (range 0.46-0.73 across models). Rejection (catching bad parameters) and recovery (correcting after acceptance) are independent model capabilities (Spearman rho=0.126, p=0.747). A tuned runtime interceptor reduces hallucination on GPT-4o-mini by 23.0 percentage points under a concurrent n=600 control, but shows no significant effect on Gemini-2.0-Flash, whose aggressive parameter rejection eliminates the target failure mode. All code, data, traces, and human labels are released at https://github.com/bhaskargurram-ai/agenthallu-bench.

Interactive agent benchmarks and multi-turn reinforcement learning increasingly place a second language model in the role of the user. This simulated user controls what information the agent receives and when, yet current benchmarks score only the agent and do not directly measure whether the user correctly executed its assigned role. We introduce UserProxyBench, an evaluation layer over the tau-bench family, and the User Fidelity Score (UFS), which measures adherence to the benchmark's private user instructions using task-grounded rubric criteria scored independently of agent success. Holding the agent fixed at GPT-5.5 and varying only the user proxy across 375 enterprise tasks changes mean task reward by 15.2 points, while 24.4% of successful episodes contain a user-specification violation. The dominant failure is premature disclosure: users provide information before it is requested. This behavior has little effect on task reward, yet among successful episodes it causes the agent to make 1.06 fewer tool calls on average, changing the interaction being evaluated while preserving the reward. Finally, across seven proxies we identify an empirical cost-fidelity frontier, enabling practitioners to select the least expensive simulator that satisfies a required fidelity level.

Evaluating LLM agents on benchmarks like SWE-Bench and GAIA can be expensive, time-consuming, and requires complex infrastructure. A single evaluation can cost thousands of dollars and take days to complete. In contrast, non-agentic LLM benchmarks that test individual capabilities (e.g., reasoning, code generation) are fast and cheap to run. In this paper, we investigate whether performance on expensive agentic benchmarks can be accurately predicted by the performance on a small, carefully selected subset of atomic evaluation instances. We introduce PACE, a framework that constructs proxy benchmarks by selecting instances from existing non-agentic evaluations whose aggregate scores most reliably predict model performances on agentic benchmarks. Given a pool of candidate instances spanning atomic capabilities, PACE fits a regression that maps a model's scores on a compact subset of source instances to its score on the target agentic benchmark. The subset itself is curated by combining two complementary instance-selection strategies, target-relevance local selection and globally informative global selection. We apply PACE to the 4 target agentic benchmarks in this paper, which yields PACE-Bench, the concrete proxy benchmark that we evaluate in the paper. Experiments across 14 models, 4 agentic benchmarks, and 19 non-agentic benchmarks show that PACE-Bench predicts agentic scores with leave-one-out cross-validation (LOOCV) mean absolute error (MAE) under 4%, Spearman correlation above 0.80, and pairwise model-ranking accuracy around 85%, all at much less than 1% of the full agentic evaluation cost. We further analyze the selected proxy instances, revealing which skills each agentic benchmark uniquely demands. PACE enables practitioners to obtain reliable estimates of agentic performance during model development, selection, and routing, without the overhead of full agent evaluation.