# Dream2Discern: Learning from Hard Latent Variants for Runtime Failure Prediction in Multi-Agent Systems

arXiv: https://arxiv.org/abs/2610.16071 · HTML: https://mlsanity.com/paper/2610.16071/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Software engineering coding agents, one of 16 directions in LLM agents and tool use.
- Builds on 41 of its 45 references that are in the map.
- First posted on arXiv 12 Oct 2026.

## Placed in

- LLM agents and tool use / [Software engineering coding agents](https://mlsanity.com/agents/software-engineering-coding-agents/)

## Builds on (most cited first, 30 of 41)

- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [LoRA: Low-Rank Adaptation of Large Language Models](https://mlsanity.com/paper/2106.09685/) (2021)
- [Qwen3 Technical Report](https://mlsanity.com/paper/2505.09388/) (2025)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [AutoGen: Enabling Next-Gen LLM Applications via Multi-Agent Conversation](https://mlsanity.com/paper/2308.08155/) (2023)
- [MetaGPT: Meta Programming for A Multi-Agent Collaborative Framework](https://mlsanity.com/paper/2308.00352/) (2023)
- [CAMEL: Communicative Agents for "Mind" Exploration of Large Language Model Society](https://mlsanity.com/paper/2303.17760/) (2023)
- [Llama Guard: LLM-based Input-Output Safeguard for Human-AI Conversations](https://mlsanity.com/paper/2312.06674/) (2023)
- [Why Do Multi-Agent LLM Systems Fail?](https://mlsanity.com/paper/2503.13657/) (2025)
- [Identifying the Risks of LM Agents with an LM-Emulated Sandbox](https://mlsanity.com/paper/2309.15817/) (2023)
- [DeepInception: Hypnotize Large Language Model to Be Jailbreaker](https://mlsanity.com/paper/2311.03191/) (2023)
- [Magentic-One: A Generalist Multi-Agent System for Solving Complex Tasks](https://mlsanity.com/paper/2411.04468/) (2024)
- [Out-of-Distribution Detection and Selective Generation for Conditional Language Models](https://mlsanity.com/paper/2209.15558/) (2022)
- [Which Agent Causes Task Failures and When? On Automated Failure Attribution of LLM Multi-Agent Systems](https://mlsanity.com/paper/2505.00212/) (2025)
- [Where LLM Agents Fail and How They can Learn From Failures](https://mlsanity.com/paper/2509.25370/) (2025)
- [AgentTrek: Agent Trajectory Synthesis via Guiding Replay with Web Tutorials](https://mlsanity.com/paper/2412.09605/) (2024)
- [AgenTracer: Who Is Inducing Failure in the LLM Agentic Systems?](https://mlsanity.com/paper/2509.03312/) (2025)
- [Language Agents as Optimizable Graphs](https://mlsanity.com/paper/2402.16823/) (2024)
- [SAFE: Multitask Failure Detection for Vision-Language-Action Models](https://mlsanity.com/paper/2506.09937/) (2025)
- [AgentDoG: A Diagnostic Guardrail Framework for AI Agent Safety and Security](https://mlsanity.com/paper/2601.18491/) (2026)
- [AgentSynth: Scalable Task Generation for Generalist Computer-Use Agents](https://mlsanity.com/paper/2506.14205/) (2025)
- [Out-of-distribution Detection with Implicit Outlier Transformation](https://mlsanity.com/paper/2303.05033/) (2023)
- [Failure Prediction at Runtime for Generative Robot Policies](https://mlsanity.com/paper/2510.09459/) (2025)
- [CoT-UQ: Improving Response-wise Uncertainty Quantification in LLMs with Chain-of-Thought](https://mlsanity.com/paper/2502.17214/) (2025)
- [Aegis: Automated Error Generation and Attribution for Multi-Agent Systems](https://mlsanity.com/paper/2509.14295/) (2025)
- [Uncertainty Quantification in LLM Agents: Foundations, Emerging Challenges, and Opportunities](https://mlsanity.com/paper/2602.05073/) (2026)
- [CausalFlow: Causal Attribution and Counterfactual Repair for LLM Agent Failures](https://mlsanity.com/paper/2605.25338/) (2026)
- [The Why Behind the Action: Unveiling Internal Drivers via Agentic Attribution](https://mlsanity.com/paper/2601.15075/) (2026)
- [AgentForesight: Online Auditing for Early Failure Prediction in Multi-Agent Systems](https://mlsanity.com/paper/2605.08715/) (2026)

## Abstract (arXiv)

Reliable deployment of LLM-based multi-agent systems calls for runtime auditors that predict terminal outcomes from observed execution prefixes. These auditors typically learn from a limited corpus of trajectories with verified outcomes. Expanding this corpus requires costly execution and verification, yet broader failure coverage alone provides no explicit criterion for identifying prefixes that the current auditor finds difficult to classify. To this end, we propose Dream2Discern, a runtime auditor trained through implicit augmentation guided by its own prediction loss. During Dream, we select perturbations of the auditor's representation operators to increase prediction loss on recorded prefixes, yielding hard latent variants. During Discern, the auditor learns to predict execution outcomes from these variants using the original labels. The variants are regenerated as the auditor learns, turning a limited corpus into a renewable source of hard examples and requiring no additional trajectory collection or outcome verification. Extensive evaluations on AFTraj-2K and StepShield show that Dream2Discern outperforms competitive failure auditors and achieves over 90% trajectory-level weighted accuracy on both benchmarks while balancing prediction accuracy and timeliness. Project page: https://zbox1005.github.io/dream2discern-project/