To summarize, with large numbers it goes nuts trying to find a trick or shortcut. After I cut off dead-ends in several trials, it always eventually considers long form addition, then ultimately rejects it as "tedious" and starts looking for "patterns". Wait, let me use the standard multiplication algorithm step by step, oh that's a lot of steps, break it down into parts. Let me think. Over ~45 minutes of thinking (I'm on CPU), but it basically cannot follow one strategy long enough to complete the work even if landed on a sensible approach.
For multiplying two-digit numbers, it does better. Starts using the "manual way", messes up certain steps, then gets the right answer for sub-problems anyway because obviously those are memoized somewhere. But at least once, it got the correct answer with the correct approach.
I think this raises the question, if you were to double the size of your input numbers and let the more powerful local model answer, could it still perform the process? Does that stop working for any reason at some point before the context window overflows?