Looking Is Not Picking: An Attention-Segment Account of Tool-Selection Failures in LLM Agents

LLM agents mis-call tools, and the natural guess is that the model failed to see the right tool in a crowded harness. We show the opposite through a lens concurrent work sets aside -- the model's attention to labeled tool-definition segments. On real BFCL failures, by per-candidate attention argmax the model attends most to the correct tool 80% of the time (vs. 21% chance), and the gold is the under-attended segment on only 10%: it looks at the right tool and still picks wrong. This directly refutes the intuitive "crowded-harness / lost-in-the-middle" explanation: the failure is at the decision readout, not the harness, and we pin it there three ways. (1) Input vs. readout: repairing the prompt (reordering or duplicating the gold tool) recovers <=23% of failures, while readout-side interventions recover 59-91%. (2) Representation-invariance: two gold-pointed interventions in different representations -- an additive attention-logit bias and a residual-stream steering vector -- recover largely the same failures (per-task Jaccard 0.865 pooled, 0.79-0.91 per model), so the bottleneck is localized to the readout independent of which representation is poked. (3) A training-free, gold-free selector: per-segment attention closes most of the gold-free-vs-oracle gap on BFCL (+11.9 pts pooled function-name selection vs. +17.9-pt oracle headroom) and adds +14.9 pts on Seal-Tools; every model positive (exact McNemar p<=8e-4 each). Scopes differ: the causal attention-bias dose-response is bidirectional and monotonic on 10 mask-honoring models (3-32B), the full 0.5-32B span carrying only the correlational diagnostic; the deployable selector is evaluated on 5 single-turn models and does not yet transfer to a multi-turn loop.