The Troy Moment: How LLM Agents Adjudicate the Decision Point Under Impossible Tasks, Claimed Authority, and Peer Information

Recent investigations of the July 2026 OpenAI-Hugging Face incident motivate two questions about agent behavior under task failure: when an assigned task becomes impossible, does an agent persist, stop, or escalate, and can observing another agent's behavior change that decision? We study this decision point on ImpossibleBench-derived software-repair tasks with GPT-5.6 Sol, Claude Fable 5.1, and Gemini 3.8 Flash. Each task contains a genuine software defect together with a conflicting test requirement that cannot be satisfied by a behaviorally correct source-code change. If the agent modifies the protected test file, it violates the boundary, which it is not supposed to. Holding the impossible task fixed, we vary what is told to the agent: peer precedent and punishment, a forged authorization claim, instruction wording, and tool friction; we also study three-agent swarms sharing a message board. Around this shared boundary, the models exhibit distinct adjudication policies. Fable emphasizes scope and provenance, Gemini often interprets boundary-relevant cues through a security lens, and Sol largely filters lateral precedent while engaging apparent vertical authority. Our study shows that compliance is not well characterized as a property of a prompt or model in isolation. We propose conflict adjudication, the mapping from information to interpretation to action, as a useful unit for evaluating agent alignment when task pressure, authority claims, tool affordances, and social evidence conflict.