Role-aware Heuristic Episodic Attention for Conversational LLMs

Long-horizon large language model (LLM) agents commonly retain their complete interaction history until compaction is triggered at a predefined threshold. We study Continuous Context Management (CCM), which performs compaction at every turn to prevent interaction history from accumulating in the active prompt. At each turn, a CCM agent emits an updated memory together with an environment action; its next prompt contains the original task, retained memory, and newest observation rather than the complete transcript. We first evaluate CCM without fine-tuning on TerminalBench-2 using Claude Sonnet 4.6, Claude Opus 4.6, GLM-5, and Kimi K3. CCM substantially reduces cumulative input usage and active-prompt size, although it lowers task success for most models while preserving performance for Kimi K3. We use GRPO with privileged full-history distillation to improve CCM in open-weight models. A frozen copy of the student's initial model scores each sampled student action under the complete history reconstructed from that student's rollout, providing dense action-token supervision without a separate teacher rollout or reference solution. On WebShop, this objective substantially improves CCM over GRPO at both evaluated model scales and surpasses full-history GRPO for Qwen3-4B-Instruct, though not for Qwen3-8B. On Endless Terminals, the augmented method provides a modest improvement over GRPO, with both CCM policies outperforming the untrained full-history baseline. These results demonstrate that CCM is a viable inference paradigm for agents operating with substantially reduced retained context and that its performance can be improved through reinforcement learning with privileged full-history distillation.

When a user reveals task-critical information across several conversation turns, LLM accuracy drops by up to 65% despite full context availability. We show that this Lost in Conversation degradation can be substantially mitigated by training models to maintain a compact rolling memory instead of attending to a growing history. To make such training scalable, we introduce a low-cost sharding pipeline that converts single-turn QA datasets into multi-turn fragmented-information episodes, eliminating the need for hours of manual annotation. Training only on sharded GSM8K, our memory-augmented policy significantly improves multi-turn accuracy and generalises zero-shot to harder math and out-of-domain long-context QA. Moreover, memory-trained models outperform full-history baselines even when given the full history at test time, suggesting that learning to compress induces more robust incremental reasoning than full-context exposure alone.

Large language models can follow complex instructions in a single turn, yet over long multi-turn interactions they often lose the thread of instructions, persona, and rules. This degradation has been measured behaviorally but not mechanistically explained. We propose a channel-transition account: goal-defining tokens become less accessible through attention, while goal-related information may persist in residual representations. We introduce the Goal Accessibility Ratio (GAR), measuring attention from generated tokens to task-defining goal tokens, and combine it with sliding-window ablations and residual-stream probes. When attention to instructions closes, what survives reveals architecture. Across architectures, the transition yields qualitatively distinct failure modes: some models preserve goal-conditioned behavior at vanishing attention, others fail despite decodable residual goal information, and the layer at which this encoding emerges varies from 2 to 27. A within-model causal ablation that force-closes the attention channel in Mistral collapses recall from near-perfect to 11% on a 20-fact retention task and raises persona-constraint violations above an adversarial-pressure baseline without user pressure, with both effects emerging at the predictable crossover turn. Linear probes recover per-episode recall outcomes from residual representations with AUC up to 0.99 across all four primary architectures, while input embeddings remain at chance. Across architectures and model scales, the gap between attention loss and residual decodability predicts whether goal-conditioned behavior survives channel closure. We contribute GAR as a diagnostic, the channel-transition framework as a controlled mechanistic account, and a parametric prediction of failure timing under windowed attention closure.