Action-Consequence Alignment for Reliable Planning and Self-Improving in Latent World Models

The component that dominates a latent world model's prediction error need not be the one whose repair most improves action selection. We show this by comparing action sequences from identical physical starts and separating endpoint error into a candidate-pool center and action-relative responses. Across four model families and four tasks, a confirmation pool of 256 new starts per task and 300 shared candidates per start shows that center error dominates MSE in 14/16 model-task cells. Yet in six of these cells, an oracle that corrects only the action-relative responses yields better physical rank correlation and top-30 elite quality than one that corrects only the center, while leaving more latent MSE (family-wise corrected intervals). The preference differs across the evaluated settings: a separate LeWorldModel (LeWM) study that executes oracle-selected actions favors center repair on PushT and on Reacher with a render-matched goal. Matched-candidate tests localize ordering loss: for LeWM, encoding realized endpoints raises physical Spearman from 0.464 to 0.975 on that Reacher setting and from 0.193 to 0.631 on PushT (64 starts per task), while Cube's encoded-goal cost remains uninformative. A 72-run objective study improves selected response diagnostics, while incremental closed-loop planning gains remain unconfirmed. These results separate error magnitude from the decision effects of oracle correction and motivate evaluating representation, prediction, and planning as separate stages.

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 models promise a general route to embodied intelligence: learn predictive dynamics once, then reason, plan, and act with them. Increasingly, the representations beneath such models are pretrained on large-scale video, interaction, and multimodal corpora, which raises a question prediction quality alone cannot answer: when is a learned representation actually actionable? We identify a failure mode we call counterfactual collapse: a model predicts visually plausible futures while failing to distinguish interventions with different behavioral consequences. This arises whenever a representation is optimized for perceptual similarity rather than intervention structure, which is precisely the objective under which most large-scale pretrained encoders are learned. We introduce Counterfactual Latent World Models (CLWM), which combine a recurrent belief-state encoder, action-conditioned latent dynamics, and a contrastive counterfactual objective that separates futures induced by distinct interventions even when their observations look alike. Across occluded manipulation, aliased navigation, and long-horizon manipulation, CLWM improves planning success over the strongest baseline (65.1% $\to$ 74.6% on Occluded Push and 67.3% $\to$ 78.9% on Aliased Maze) and reduces exploitative planning failures (18.4% $\to$ 9.7% on Deferred Kitchen), with ablations attributing the gains to hard counterfactual negatives, especially perceptual-alias negatives. Finally, our counterfactual separability metric, which tracks planning success across the five baseline model classes ($r \ge 0.94$), is representation-agnostic: given intervention-outcome labels, it can audit any encoder, pretrained or trained from scratch, before a planner trusts it. We do not yet measure it on large-scale pretrained encoders. Here we establish the metric and its relationship to planning success for world models trained from scratch.