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Not wholly surprising, and will be interesting to see what is developed to deal with this collpase.
I wonder whether there even is something to deal with this collapse. It just seems to me that data generated by the model itself will never have any new cases to learn from. I think it will just keep reinforcing the current knowledge already in the model. This is not always a bad thing, we have been doing that(the reinforcing) for so long now under "epochs". But even with epochs you end up overfitting after a while