Compress What You See, Not What You Say: Anchored Context Distillation for Latent-Observation Software Engineering Agents

LLM-based coding agents solve software-engineering tasks through iterative interactions with development environments, where returned observations accumulate in the context and become a major source of inference cost. Observation compression reduces this cost by shortening observations before they are appended to the context. However, existing methods still exhibit an unsatisfactory efficiency-effectiveness trade-off, as they do not explicitly model how compression affects the agent's subsequent behavior. This paper proposes CoACT, an action-preserving observation compression method for coding agents. CoACT is built on next-action preservation (NAP), which requires a compressed observation to induce the same next action as the raw observation. By checking the agent's immediate next action, NAP provides a practical signal for whether a compression preserves the information needed for continued task solving. During training, a teacher model first generates multiple compressed candidates of each observation. CoACT then uses an action-preservation reward based on NAP to filter out candidates that would change the agent's next action, and uses a length-reduction reward to choose compact candidates as supervision for a lightweight compressor. Experiments on SWE-bench Verified with three agentic models show that CoACT reduces average total token consumption by 33.0% while maintaining task-solving effectiveness close to the uncompressed agent.

The transition from human-centric assistance to Autonomous Software Engineering (ASE) agents has enabled the resolution of complex real-world SE tasks. However, the trial-and-error nature of these agents generates lengthy interaction trajectories, creating severe bottlenecks in terms of context window limits and cost. While context compression offers a potential remedy, prior approaches suffer from static pruning strategies and granularity mismatches, often failing to preserve the semantic dependencies and syntactic details crucial for SE tasks. To strictly preserve critical task evidence while reducing context length, we introduce AttnCompress, a dynamic attention-guided trajectory compression framework. Unlike existing approaches, AttnCompress bridges the gap between semantic integrity and dynamic adaptability through three key mechanisms: (1) structure-aware segmentation via perplexity (PPL) spikes to preserve the syntactic structure of code and logs; (2) relevance estimation using proxy attention weights to quantify the precise relevance of historical blocks to the agent's current reasoning; and (3) a dynamic rolling window to re-evaluate and recall historical context as the task evolves. Extensive evaluation on SWE-Bench-Verified and Multi-SWE-Bench demonstrates that AttnCompress achieves a pass rate of 53.17%, outperforming prior state-of-the-art baselines while reducing token consumption by 21.6% and total costs by 33.6%. The framework proves to be model-agnostic and generalizes effectively across diverse programming languages.

Coding agents re-send large file reads and tool outputs to a frontier LLM every turn, and this context dominates their token bill. General-purpose prompt compressors are trained on prose and suit code poorly: they paraphrase identifiers and drop the exact spans an agent needs to edit. We present Paritok-4B, a 4B LoRA compressor for coding-agent trajectories built on two commitments. It is extractive: it selects spans rather than rewriting them, and 96.0% of the identifiers, paths, and numbers it emits already appear in its input, holding at 96.2% on held-out SWE-bench Lite output. It is intent-conditioned: told the agent's current task, it acts chiefly inside a retained segment, selecting which lines survive (retained lines are +0.067 more intent-relevant than removed ones, paired 95% CI [+0.056, +0.078]) rather than changing how much is retained. We distil a gpt-4.1-mini teacher over 67,074 real OpenHands trajectories into 40,606 validated examples and fine-tune Qwen3-4B. On all 300 SWE-bench Lite instances, Paritok-4B compresses agent context to 25.7% of its size, 2.0x harder than a gpt-4.1-mini compressor (50.2%) and 2.4x harder than gpt-5 (61.9%), while retaining 86.5% of uncompressed single-shot solve quality. Fed the cat -n line-numbered input real agents produce, it compresses slightly less (27.8%) and retains more (89.3%); there the paired test is informative, with 30 instances solved only uncompressed and 17 only compressed, an exact McNemar p=0.079, so at this sample size compressing context to roughly a quarter of its size does not significantly reduce the solve rate. The model is a 264 MB adapter that self-hosts on one 24 GB GPU with no per-token compressor fee, which at list prices decides the economics: gpt-5 as a compressor is net-negative, costing more than the downstream tokens it saves. Weights, data, and evaluation scripts are open (Apache 2.0).