Replace, Don't Expand: Mitigating Context Dilution in Multi-Hop RAG via Fixed-Budget Evidence Assembly

Retrieval-Augmented Generation (RAG) systems often fail on multi-hop queries when the initial retrieval misses a bridge fact. Prior corrective approaches, such as Self-RAG, CRAG, and Adaptive-$k$, typically address this by \textit{adding} more context or pruning existing lists. However, simply expanding the context window often leads to \textbf{context dilution}, where distractors crowd out relevant information. We propose \textbf{SEAL-RAG}, a training-free controller that adopts a \textbf{``replace, don't expand''} strategy to fight context dilution under a fixed retrieval depth $k$. SEAL executes a (\textbf{S}earch $\rightarrow$ \textbf{E}xtract $\rightarrow$ \textbf{A}ssess $\rightarrow$ \textbf{L}oop) cycle: it performs on-the-fly, entity-anchored extraction to build a live \textit{gap specification} (missing entities/relations), triggers targeted micro-queries, and uses \textit{entity-first ranking} to actively swap out distractors for gap-closing evidence. We evaluate SEAL-RAG against faithful re-implementations of Basic RAG, CRAG, Self-RAG, and Adaptive-$k$ in a shared environment on \textbf{HotpotQA} and \textbf{2WikiMultiHopQA}. On HotpotQA ($k=3$), SEAL improves answer correctness by \textbf{+3--13 pp} and evidence precision by \textbf{+12--18 pp} over Self-RAG. On 2WikiMultiHopQA ($k=5$), it outperforms Adaptive-$k$ by \textbf{+8.0 pp} in accuracy and maintains \textbf{96\%} evidence precision compared to 22\% for CRAG. These gains are statistically significant ($p<0.001$). By enforcing fixed-$k$ replacement, SEAL yields a predictable cost profile while ensuring the top-$k$ slots are optimized for precision rather than mere breadth. We release our code and data at https://github.com/mosherino/SEAL-RAG.