With 1-hot encoding, the answer is "wall", with 100% probability. Oh, you gave plausibility to "fence" too? WRONG! ENJOY MORE PENALTY, SCRUB!
I believe this unforgiving dynamic is why model distillation works well. The original teacher model had to learn via the "hot or cold" game on text answers. But when the child instead imitates the teacher's predictions, it learns semantically rich answers. That strikes me as vastly more compute-efficient. So to me, it makes sense why these Llama 3.2 edge models punch so far above their weight(s). But it still blows my mind thinking how far models have advanced from a year or two ago. Kudos to Meta for these releases.