Composition Collapse: Stable Factual Knowledge Does Not Imply Compositional Reasoning

Large Language Models fail at implicit multi-hop reasoning: a model answers "When was $X$ born?" and "Who is $Y$'s closest friend?" correctly but fails on "When was $Y$'s closest friend born?" in a single forward pass, even when both facts are perfectly memorized and individually retrievable. We study this failure in a controlled natural language setting with a strict separation between individuals exposed to compositional contexts during pretraining and those that never appear in any such context. We confirm that compositional failure persists even at 97% 1-hop accuracy, establishing the gap as a pretraining failure rather than a knowledge absence. We propose and test nine data-centric augmentation formats and find that compositional pretraining transfers to unseen questions for exposed individuals, but never to individuals absent from compositional pretraining, suggesting that exposure to compositional contexts during pretraining is a necessary condition for implicit multi-hop reasoning. Code is available at https://github.com/ykrmm/composition-bound .

Knowledge graph embedding (KGE) models predict single-hop links well but have no mechanism for zero-shot compositional queries: multi-hop questions whose relation chains never appeared during training. Holographic Reduced Representations (HRR), which bind and unbind symbols via circular convolution, are a theoretically attractive candidate, since binding is approximately invertible and associative. We test whether this promise holds. We study two holographic memory variants, real-valued HRR and phase-only Fourier HRR (FHRR), each with a modern Hopfield cleanup, on FB15k-237 over five seeds. Four findings follow. First, both are competitive single-hop retrievers (filtered MRR 0.358 +/- 0.002 for HRR, 0.350 +/- 0.021 for FHRR). Second, neither composes zero-shot: accuracy stays at chance across all cleanup temperatures. Third, the main contribution, we localise the failure mechanistically. A hop-1 probe shows the memory recovers the correct intermediate entity with high fidelity (MRR 0.896 +/- 0.002 for HRR), yet composition still fails even with a verified-correct intermediate. A second probe shows why: posing the ground-truth second-hop fact as a standalone atomic query, bypassing composition entirely, already recovers it at only 0.26 to 0.48x average atomic accuracy, uniformly across relation fan-out. The bottleneck is not the bind-unbind algebra or the cleanup; it is that facts compositional chains pass through are intrinsically harder for the superposed memory to retrieve, a capacity and interference effect present already at a single hop. Fourth, we prove (Lemma 4.1) that FHRR's softmax cleanup is not phase-equivariant, compounding the primary failure on the minority of chains where hop-1 itself errs. Fixing zero-shot composition requires improving retrieval capacity under superposition, not just redesigning the cleanup.

Compositional reasoning is critical for real-world problem solving: since training data is necessarily limited, models must generalize by composing learned skills in new ways. While post-training methods such as reinforcement learning (RL) have substantially improved the reasoning abilities of language models (LMs), their effects on compositional reasoning remain less well understood. We propose a dependency-graph framework to formalize compositional reasoning, yielding three levels of compositionality with increasing complexity. Empirically, we instantiate this framework with data-structure tasks, which provide deterministic reward computation and clear compositional structure. We find a consistent decomposed-to-composed asymmetry: decomposed-skill training does not reliably transfer to composed tasks, whereas composed-task training transfers more readily back to decomposed tasks. We provide theoretical explanation for this asymmetry, and further evaluate compositional generalization under length extrapolation, structural distribution shift, and transfer to tasks requiring unseen skills. Finally, we present a pilot study on real-world tool-calling benchmarks, showing preliminary evidence that the decomposed-to-composed asymmetry can extend to practical settings.