Understanding Confabulation and Rethinking Reconstruction in Activation Explanations

Natural Language Autoencoders (NLAs) produce unsupervised text explanations of a model's activations: a verbalizer describes an activation and a reconstructor learns to recover it from this text. Under the established point-reconstruction NLA training recipe, explanations become more useful for predicting model behavior while also increasingly introducing unsupported details and exhibiting writing defects. To assess these changes separately, we introduce the first publicly available standardized evaluation framework for unstructured NLA explanations, measuring information recoverable from explanations, contextual support for their claims, and writing quality. To address confabulation and writing defects, we move beyond predicting a single activation: explanations can distinguish distributions of possible activations even when their means and optimal point-reconstruction rewards are identical. We introduce Flow-NLA, which models the distribution of activations compatible with an explanation and trains the verbalizer using a diffusion likelihood bound. Across Qwen, Gemma, and Apertus, this richer signal retains the utility gains of point reconstruction while curbing the growth of confabulation and writing defects, opening up a direction for improving activation-derived training signals to encourage more informative, supported, and readable explanations. The evaluation and training code is available at the anonymous repository: https://anonymous.4open.science/r/nla-flow-ICLR-26F8/