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Our swarm workers kept re-reading files they had already read. Context compaction was summarising the tool output that held the file. Pasting the file into the summary does not fix it; returning the last turns verbatim does. Measured three ways on the same 27B.
Three weeks after the swarm shipped its first honest builds, the work stopped being about making small local models smarter and became about making them stop lying to me. Here is what 602 commits bought, what the desktop looks like now, and the three defects I found in my own honesty machinery while writing this post.
We forked Block's goose into a multi-agent swarm that decomposes a hard app spec into a task DAG, runs it across three small local models on LM Studio, and makes them verify their own work by actually running it. Over six days and 300-plus commits, the last real limit stopped being the swarm's coordination and became the small model's raw coding ability — and even that ceiling moved.