arXiv AI By Zhensheng Zou (Peking University), Guoqing Wang (Peking University), Dan Hao (Peking University)

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

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The paper introduces LOHA, a context layout that compresses older tool observations into soft tokens while keeping the agent’s own turns and the last K observations in plain text, and ACD, a training method that distills full‑text predictions into this latent representation while anchoring behavior on plain text. This approach reduces context per call by up to 57% without significant loss in resolve rates, and improves instance throughput in single‑GPU serving. Experiments on SWE‑bench Verified show that K=3 yields a 43–57% compression with only modest performance impact, while larger windows favor task performance over compression.

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