Predicting Closed-Loop Performance of Latent World Models: Offline Checkpoint Selection for MPC and Model-Based RL Under Non-Markovian Rewards in LunarLander

Latent world models are trained to predict future states in a learned representation and are then deployed inside a planner that selects actions by simulating them forward. Current practice adopts the prediction error, the single- or multi-step rollout loss on held-out data, as the training and model-selection objective, on the assumption that a lower prediction error yields better control. We show that this assumption is unreliable for a structural reason: a planner does not query the model on the training distribution but on the states that its candidate actions reach, which generally leave the data manifold, so an error averaged over the data cannot by itself govern control. We therefore reframe the objective as the discrepancy between the predicted and the true plan-cost at the plan the planner commits to, and prove that the planner's suboptimality is bounded by twice this discrepancy, whereas the data-averaged prediction error neither bounds nor tracks it. Under a linear-control premise the discrepancy separates into two terms. The first is a small on-manifold residual, on which the predicted and true dynamics agree and which a spectral tax prices through the non-normality of the latent transition operator. The second is an off-manifold divergence, on which an action carries the state off the manifold and the two dynamics diverge; this divergence is the binding term and is bounded by no data-averaged error. Synthetic operators confirm the pricing formulas, and latent model-predictive control experiments confirm the decoupling: across seeds, the single-step validation error is essentially uncorrelated with control success, whereas a fidelity score on the planner-reachable measure tracks it.

A latent world model may achieve accurate short-horizon prediction while still inducing a latent space that is poorly aligned with planning. A key issue is spatiotemporal mismatch: these models are often trained with local predictive supervision, but deployed for long-horizon goal-directed search in latent spaces where Euclidean distance may not reflect what is reachable within a finite action budget. We present the Reachability-Correction auxiliary objective (RC-aux), a lightweight correction for this mismatch in reconstruction-free latent world models. RC-aux keeps the world-model backbone unchanged and adds planning-aligned supervision along two axes. Along the time axis, multi-horizon open-loop prediction trains the model beyond one-step consistency. Along the space axis, budget-conditioned reachability supervision, together with temporal hard negatives, encourages the latent space to distinguish states that are eventually reachable from those reachable within the current planning horizon. At test time, the learned reachability signal can also be used by a reachability-aware planner to favor trajectories that are both goal-directed and attainable under the available budget. We instantiate RC-aux on LeWorldModel and evaluate it under both continuation-training and matched-from-scratch settings. Across goal-conditioned pixel-control tasks and a LIBERO-Goal extension, RC-aux improves LeWM-style planning with modest additional cost. These results suggest that planning with latent world models depends not only on predictive accuracy, but also on whether the learned representation encodes the temporal and geometric structure required by downstream search. The code is available at https://github.com/Guang000/RC-aux.

World-model evaluation for model-based reinforcement learning typically asks whether the learned model predicts reward and value well, which can leave planning-relevant errors in the model's latent rollouts unmeasured. We introduce a complementary diagnostic, operator-on-F, that compares a model's k-step latent pushforward to the environment's on an observable subset F, using the model's own predictor. On a TD-MPC2 size sweep over cheetah-run, reward-prediction error stays within [0.028, 0.091] for every model size - only about 3x variation - so an unnormalized reward-fit check has narrow resolution to distinguish them; the (unnormalized) Bellman residual and reward error themselves have weak relationships with return (Spearman -0.10 and -0.30). Operator error spans 0.28 to 2.62 over the same sizes. At 317M the operator error is 2.62 - an order of magnitude above the 0.28-0.36 cluster - and the planning return collapses to 0.9, while reward-prediction error (0.091) is the highest of the five but stays within the same small [0.028, 0.091] range as the rest of the sweep. The rank correlation between operator error and return loss is -0.90 (anchor-bootstrap 95% CI [-0.90, -0.70] at n=5 sizes; leave-one-out removal of any single size leaves it at -0.80 or stronger). The operator also returns informative, architecture-discriminating estimates in a cross-architecture comparison between TD-MPC2 and a pure-SSL latent world model. The operator diagnostic complements value-equivalence rather than replacing it.