Solving Every Step Is Not Enough: Milestone Oracles Reveal a Composition Gap in LLM Math Reasoning

Large language models solve grade-school math word problems with high accuracy, yet a single irrelevant clause inserted into the problem can collapse it. We reconcile these observations with a mechanistic account. We show that the model's internal computation decomposes into a four-stage sequential pipeline, Schema Abstraction, Operation Planning, Operand Binding, and Computation, each stage producing a distinct intermediate representation in an identifiable band of layers. Using the same scaffold to diagnose distractor-induced failure, we localize the corruption to a single stage, Operation Planning, implemented by a set of attention heads whose causal role we validate bidirectionally. In short, we provide a mechanistic interpretation of math word problem reasoning in LLMs, and their failure when distracted.

Mathematical reasoning benchmarks are typically organized by topic, but language models may organize their internal computation by reusable reasoning approach instead. In this paper, we investigate whether open math-capable LLMs organize internally by topical sub-skill or by reasoning approach, and we present evidence that the approach is the key. We introduce a generation-replay protocol: a model first generates a solution, after which we replay the exact prompt-plus-generation trajectory and extract activation-importance signatures over the reasoning tokens. We cluster these signatures without supervision across eight models and five mathematical reasoning sources, then evaluate the recovered structure with structural, semantic, and intervention tests. Across all 40 model-source cells, the recovered clusters outperform matched-size random baselines. Two independent frontier-LLM judges find approach-level coherence in 77-82% of real clusters versus 6-11% in within-source controls, and topic-pure clusters usually receive labels finer than the topic itself. In approach-controlled prompting, changing the requested reasoning approach shifts cluster assignment in seven of eight model conditions, whereas paraphrases largely preserve it. These results indicate that math-capable LLMs organize internal mathematical computation by reasoning approach rather than benchmark topic. The implication is that topic-stratified benchmarks and topic-balanced training corpora can still miss the axis that matters: even deliberately topic-balanced corpora may remain imbalanced over reasoning approaches.

While Large Language Models (LLMs) have achieved near-perfect performance in solving high-school mathematics, their ability to evaluate the diverse reasoning processes of real human students remains under-examined. To bridge this gap, we introduce RealMath-Eval, a rigorously annotated benchmark of 224 real-world exam responses from high schools. Our initial evaluation reveals that even state-of-the-art LLM judges struggle significantly on this task, exhibiting a high Mean Squared Error ($\sim$2.96) against expert human grading. To probe a plausible explanation, we contrast this performance with a control setting where the same judges evaluate synthetic LLM-generated solutions. We identify a stark Evaluation Gap'': judges are considerably more accurate and consistent on synthetic text (MSE $\sim$1.17) but struggle to generalize to authentic student reasoning. Through semantic embedding analysis, we find that synthetic errors suffer from a structural collapse'' into predictable, low-dimensional linear subspaces, whereas human errors form a more diverse error space. Furthermore, generative probability probes suggest that human reasoning involves significantly higher information-theoretic surprisal, indicating that student reasoning transitions are more out-of-distribution for current models. Finally, we find that surface-level style transfer fails to close this gap. Our findings suggest that current LLM evaluation pipelines relying heavily on synthetic data may not adequately capture the diversity of authentic student mathematical reasoning.