From State to Action: OODA-Tool for Reliable Multi-Turn Tool Use

Multi-turn tool-use failures can hinge on a single model call, yet reward variation alone does not reveal which call would benefit from training. When rewards depend on later interactions, their variation can reflect downstream randomness rather than differences between the current actions. We introduce Critical-State RL to identify trainable states in multi-turn interactions. Given task-defined candidate calls and local rewards, the method assesses whether each reward captures the action's effect on task success and whether improvement over a reference policy is possible. It then uses nested sampling to separate action-dependent reward variation from continuation noise and optimizes the policy at the selected states using contextual-bandit training. Experiments on the Berkeley Function Calling Leaderboard (BFCL) v4 compare training at diagnostic-selected states with training at alternative states. For missing-function tasks, the diagnostic selects the response after the tool becomes available; for missing-argument tasks, it selects the response before the missing argument is supplied. Training the selected responses improves performance, including about 14 percentage points on the missing-function task, while training the alternatives leaves performance flat or worse. We further apply the recipe across models and tasks, including logged repeat-call avoidance and memory management.

On-Policy Distillation (OPD) has emerged as a powerful paradigm for transferring reasoning capabilities from frontier models to smaller models, while extending its success to multi-turn agentic environments remains challenging. We study agentic OPD through interaction states, distinguishing the objective task and executed action-observation record from the internal semantic trajectory of student reasoning. Through this lens, we identify two roles of student reasoning in multi-turn OPD: prior reasoning distorts teacher supervision, while current reasoning shapes the action alternatives sampled at the same state. Specifically, at matched interaction states, removing prior student reasoning improves teacher continuation success and changes the teacher's token-level targets, with larger continuation gains at later turns. Meanwhile, resampling complete reasoning-action responses yields greater action diversity at the same state than resampling actions under a fixed reasoning trace. We introduce State-Grounded On-Policy Distillation, a framework that grounds teacher supervision in interaction states and reallocates the sampling budget to generate multiple complete reasoning-action responses at states with high response entropy, while retaining full-history student generation. Comprehensive evaluations across ALFWorld, ScienceWorld and WebShop demonstrate that State-OPD achieves the highest macro-average success rate among the evaluated methods for both Qwen3-1.7B and Qwen3-4B students. Notably, for Qwen3-4B, State-OPD raises macro-average success from 26.07% with the strongest baseline to 31.74% and surpasses its Qwen3-32B teacher on ALFWorld Seen. Further analyses reveal that State-OPD achieves higher task success with fewer supervised turn responses and substantially reduces persistent failed-action repetition; qualitative traces illustrate decision revision based on interaction feedback.

Tool-calling agents infer task state from accumulated dialogue and tool traces. In persistent interactions, however, historical traces may remain structurally valid and semantically plausible after they cease to be authoritative for the current request. We show that such history can hijack a policy the model already possesses: on Qwen3-1.7B, pollution flips 32.1% of decisions that are correct under the original trajectory and frequently induces reuse of corrupted entities or interface conventions. We introduce bench, a paired benchmark with synchronized Original, Polluted, and Oracle State views that preserve the system policy, current tools, latest request, and gold next action. Eleven gold-preserving interventions isolate failures in decision state, entity binding, and interface execution across complete calls and non-call decisions. We further propose ours, which transfers an Oracle-conditioned teacher policy to a student observing only polluted history through soft supervision on student-generated prefixes. On Qwen3-1.7B, ours achieves 87.0% Balanced Tool-Use Accuracy, outperforming Gold-SFT (66.3%), Oracle sequence distillation (82.3%), and off-policy token distillation (85.0%). The method scales consistently: an 8B teacher raises the same compact 1.7B student to 91.9%, while an 8B student reaches 93.0%. The resulting policies further transfer to clean histories, unseen functions, independently regenerated evaluation contexts, external tool-use benchmarks, and noisy multi-hop question answering. These results establish history reliability as a distinct tool-use bottleneck and demonstrate reliable-state policy transfer as an effective and scalable solution.