Why Do LLM Agents Fail in Exploring New Environments? A World-Modeling Perspective

Shiqi Chen, Tongyao Zhu, Zian Wang, Jinghan Zhang, Kangrui Wang, Ruochen Zhou, Siyang Gao, Teng Xiao, Yee Whye Teh, Junxian He, Manling Li


Abstract
Large Language Models (LLMs) as agents often fail to improve in new environments. We identify and characterize a failure mode we call exploration collapse: under reinforcement learning (RL) in environments whose states are unfamiliar to the policy, Pass@k, the probability that at least one of k sampled trajectories succeeds, drops markedly over training even as Pass@1 edges up, revealing increasingly brittle exploration; environments closer to the pretraining distribution show no such decline. We trace this collapse to weak grounding in environment states and dynamics, and study a simple remedy: explicitly teaching the agent to estimate the current state and predict its transitions before optimizing for reward. We instantiate it as SPA, an explore-then-exploit recipe that cold-starts the policy with a Self-Experience supervised finetuning (SFT) stage, collecting the model’s own interaction trajectories and supervising state and next-state prediction, and then runs standard RL. The resulting world model serves as a grounded initialization for RL rather than an inference-time planner. Across unseen environments, SPA consistently and substantially improves over vanilla RL: for example, it raises the Sokoban success rate from 25.6% to 59.8% on Qwen2.5-1.5B-Instruct, letting sub-3B models surpass a 20B baseline on these tasks. Controlled studies indicate that the gains track four factors: grounded state representations, explicit transition modeling, self-experience trajectories from a sufficiently strong exploration policy, and adequate coverage of transition data.
Anthology ID:
2026.findings-emnlp.1023
Volume:
Findings of the Association for Computational Linguistics: EMNLP 2026
Month:
October
Year:
2026
Address:
Budapest, Hungary
Editors:
Hung-Yi Lee, Sunipa Dev, Jessy Li, Desmond Elliott
Venue:
Findings
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SIGDAT
Publisher:
Association for Computational Linguistics
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Pages:
21612–21626
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URL:
https://aclanthology.org/2026.findings-emnlp.1023/
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Cite (ACL):
Shiqi Chen, Tongyao Zhu, Zian Wang, Jinghan Zhang, Kangrui Wang, Ruochen Zhou, Siyang Gao, Teng Xiao, Yee Whye Teh, Junxian He, and Manling Li. 2026. Why Do LLM Agents Fail in Exploring New Environments? A World-Modeling Perspective. In Findings of the Association for Computational Linguistics: EMNLP 2026, pages 21612–21626, Budapest, Hungary. Association for Computational Linguistics.
Cite (Informal):
Why Do LLM Agents Fail in Exploring New Environments? A World-Modeling Perspective (Chen et al., Findings 2026)
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PDF:
https://aclanthology.org/2026.findings-emnlp.1023.pdf