What they did
The authors developed STRACE to address the problem that real execution traces of long-horizon agents contain many irrelevant or redundant steps, making it difficult for LLM-based optimizers to diagnose failures effectively. STRACE operates at two levels: at the batch level, it mines failure patterns across many trajectories to filter out redundant traces and retain only representative failures; at the individual trajectory level, it builds a textual dependency graph over steps, then performs causal localization to remove non-causal steps and identify the true root-cause module for optimization.
The framework was evaluated on VeruSAGE-Bench, a challenging formal verification task, using human-expert designed agents. STRACE was compared against standard context filtering baselines, including naive truncation and sliding window approaches.