Denser $\neq$ Better: Limits of On-Policy Self-Distillation for Continual Post-Training

arXiv:2607.01763v2 Announce Type: replace-cross Abstract: Continual post-training enables foundation models to acquire new knowledge while preserving existing capabilities. Recent work suggests that on-policy learning can mitigate forgetting, with self-distillation as a particularly attractive approach. We revisit this optimistic claim through self-distillation policy optimization (SDPO). Our experiments show that SDPO accelerates in-domain specialization when teacher signals are stable and well aligned, but struggles to generalize out of distribution. In continual post-training, SDPO exhibits greater forgetting and can even collapse, whereas GRPO, the more established on-policy reinforcement learning method, adapts more conservatively and better preserves prior capabilities. Further analyses link these failures to increased drift in parameter and response space, and to amplification of high-frequency artifacts through a self-reinforcing teacher-student loop. Thus, on-policy data alone is insufficient for continual learning. Self-distillation is effective when teacher targets are stable and token-level supervision is reliable, but should not be treated as a default stabilizer for continual post-training. Our code is available at https://github.com/Moenupa/SDPO-CL.