Large language models (LLMs) struggle with compositional generalisation, limiting their ability to systematically combine learned components to interpret novel inputs. While architectural modifications, fine-tuning, and data augmentation improve compositionality, they often have limited adaptability, face scalability constraints, or yield diminishing returns on real data. To address this, we propose CARMA, an intervention that enhances the stability and robustness of compositional reasoning in LLMs while preserving fine-tuned performance. CARMA employs mutual information regularisation and layer-wise stability constraints to mitigate feature fragmentation, ensuring structured representations persist across and within layers. We evaluate CARMA on inverse dictionary modelling and sentiment classification, measuring its impact on semantic consistency, performance stability, and robustness to lexical perturbations. Results show that CARMA reduces the variability introduced by fine-tuning, stabilises token representations, and improves compositional reasoning. While its effectiveness varies across architectures, CARMA’s key strength lies in reinforcing learned structures rather than introducing new capabilities, making it a scalable auxiliary method. These findings suggest that integrating CARMA with fine-tuning can improve compositional generalisation while maintaining task-specific performance in LLMs.

Understanding when and how linguistic knowledge emerges during language model training remains a central challenge for interpretability. Most existing tools are post hoc, rely on scalar metrics, or require nontrivial integration effort, making comprehensive interpretability analysis difficult to deploy and maintain. We introduce TRACE, a modular toolkit for training and inference-time interpretability analysis of transformer models. It enables lightweight, in-training analysis of linguistic and representational signals, including features probing, intrinsic dimensionality, Hessian curvature, and output diagnostics. It integrates with ABSynth, a controllable synthetic corpus generator that provides structured annotations for precise evaluation of linguistic feature acquisition. Experiments with autoregressive transformers demonstrate that TRACE reveals developmental phenomena such as early syntactic emergence, delayed semantic acquisition, and representational compression, signals overlooked by traditional scalar metrics such as loss or accuracy. With minimal integration effort, the tool enables layer-wise diagnostics, convergence-based early stopping, and detection of structural errors, making transformer analysis interpretable, actionable, and reproducible.