TRACE: Capability-Targeted Agentic Training

arXiv:2604.05336v2 Announce Type: replace Abstract: Models often fail to complete agentic tasks because they lack core capabilities required by the target environment. However, mainstream approaches for addressing these failures typically either fine-tune directly on target environments or generate synthetic data that is not targeted to the model's actual capability deficits, resulting in low sample efficiency and limited generalization. We introduce TRACE (Turning Recurrent Agent failures into Capability-targeted training Environments), an end-to-end system for environment-specific agent self-improvement. TRACE contrasts successful and failed trajectories to automatically identify missing capabilities, synthesizes a targeted training environment for each capability that rewards whether the capability is exercised, trains a LoRA adapter via reinforcement learning on each synthetic environment, and then trains a mixture-of-experts model over the capability adapters. TRACE can be effectively applied across different environments, improving over the base agent by +15.3 points on $\tau^2$-Bench, a customer-service agent benchmark, and by +15.0 points Pass@1 on SWE-Bench Verified, a software-engineering benchmark. TRACE outperforms the strongest external baselines, GEPA and SWE-RL, by +8.6 points and +8.4 points, respectively. In addition, TRACE is more sample-efficient than strong fine-tuning baselines: using fewer than one-fourth the number of rollouts, TRACE outperforms the best-performing baselines, GRPO and GEPA, and achieves higher final accuracy by +10.4 and +8.6 points on $\tau^2$-Bench.