When Privileged Guidance Misaligns: State-Matched Routing and Contextualized Self-Distillation for Multi-Turn Agents

arXiv cs.AIAugust 7, 2026en

arXiv:2608.05219v1 Announce Type: new Abstract: Privileged on-policy distillation provides dense supervision for multi-turn agents by allowing a synchronized teacher to re-score the student's response at every turn with access to training-only references, such as successful trajectories. In interactive environments, however, the student's preceding actions continually change the execution state. As the student takes different actions or completes subgoals in a different order, its rollout may reach states not covered by the reference, making the reference an unreliable source of guidance for the state actually reached. Applying privileged distillation indiscriminately therefore creates state

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