Beyond Static Snapshots: A Grounded Evaluation Framework for Language Models at the Agentic Frontier

We argue that current evaluation frameworks for large language models (LLMs) suffer from four systematic failures that make them structurally inadequate for deployed, agentic systems: distributional, temporal, scope, and process invalidity. These failures compound in RLHF, making reward hacking a predictable consequence of evaluation design rather than an unpredictable training pathology, and RLHF's dual-model architecture imposes a hardware barrier limiting evaluation reproducibility. We propose the Grounded Continuous Evaluation (GCE) framework and present ISOPro as a reference implementation. ISOPro replaces the learned reward model with a deterministic verifier, eliminating reward hacking by construction in verifiable-reward domains, and updates LoRA adapters on CPU, reducing the hardware barrier by an order of magnitude. We validate ISOPro across three architectures (Qwen 2.5 3B, Llama 3.2 3B, Gemma 2 2B) and two domains (scheduling, MBPP), with a head-to-head matched-compute comparison against GRPO-LoRA. Across twelve cells, ISOPro produces the largest absolute capability gains (+25.6, +22.2, +16.0pp) at mean delta +9.0pp and worst-case regression -5.6pp; GRPO-LoRA at consumer-budget hyperparameters reaches a smaller peak gain (+8.5pp), deeper worst-case regression (-10pp), and mean delta -1.5pp. Held-out compositional generalization on MBPP reaches 40% for ISOPro on two of three architectures (including a 0% to 40% bootstrap on Qwen 2.5 3B), against 20% for GRPO-LoRA on one of three. We characterize a buffer-skew failure mode in which the implicit curriculum can erode pre-existing tier capability under three preconditions, with three corresponding mitigations. The work is situated alongside DeepSeek-R1's GRPO, which arrived at the same architectural conclusion at scale: for verifiable-reward domains, the verifier is the reward signal.