Latent reasoning reduces the token-generation cost of chain-of-thought reasoning by replacing explicit intermediate tokens with continuous latent transitions. However, existing latent reasoning methods usually rely on dense and entangled transitions, making their reasoning trajectories difficult to inspect or intervene on. We introduce LSTR (Latent Sparse Transcoder Reasoning), a framework that turns sparse transcoders from post-hoc diagnostic tools into in-loop, intervenable transition components for latent reasoning. At each latent step, a Latent Transition Transcoder (LTT) combines a linear skip path with a Top-k sparse innovation path, exposing a small set of active sparse features. Under matched compression settings, LSTR offers a mechanistically inspectable alternative to dense latent reasoning. On GSM8K-Aug, ablating only a few top-active sparse features reduces accuracy by up to 16.5%, whereas analogous interventions have much smaller effects in dense latent baselines. These results indicate that the active sparse features are causally involved in the latent transition process, rather than merely post-hoc descriptors. Additional experiments on mathematical benchmarks and StrategyQA suggest that sparse latent transitions can preserve the compression benefits of latent reasoning while making the resulting trajectories more inspectable and intervenable.

Vision-Language Models (VLMs) are increasingly deployed in socially consequential settings, raising concerns about social bias driven by demographic cues. A central challenge in measuring such social bias is attribution under visual confounding: real-world images entangle race and gender with correlated factors such as background and clothing, obscuring attribution. We propose a face-only counterfactual evaluation paradigm that isolates demographic effects while preserving real-image realism. Starting from real photographs, we generate counterfactual variants by editing only facial attributes related to race and gender, keeping all other visual factors fixed. Based on this paradigm, we construct FOCUS, a dataset of 480 scene-matched counterfactual images across six occupations and ten demographic groups, and propose REFLECT, a benchmark comprising three decision-oriented tasks: two-alternative forced choice, multiple-choice socioeconomic inference, and numeric salary recommendation. Experiments on five state-of-the-art VLMs reveal that demographic disparities persist under strict visual control and vary substantially across task formulations. These findings underscore the necessity of controlled, counterfactual audits and highlight task design as a critical factor in evaluating social bias in multimodal models.