If the agent is able to “decide” when a loop should occur vs when an output token is produced, that effectively moves the CoT inside the architecture. While that’s not what is happening here, it’s clearly a plausible way we could see CoT disappear.
It is worth noting that None performed better than Low and nearly the same as Medium on ARC3. And with adapter it still scored >96% with no CoT. So I think it is possible but it also cost them more on None.
> that effectively moves the CoT inside the architecture
This may be a bit of a nitpick, but... does it? I agree that giving the model decisions on looping certainly makes interpretability harder, because it adds more transient internal states to deal with and changes the number of them depending on prior states. But is it really pulling CoT inside the forward pass, if the sequence length it's operating on isn't growing? In some sense the whole technique and tradeoff of CoT is "add more tokens to the sequence, use them to reason with", with one of the benefits being, you force the model to output tokens, so you can (hopefully) understand it. And the big point TFA is making is, nobody is doing recurrence over sequence length as far as we know.