Large language models are highly capable of answering difficult questions by retrieving, recombining, and attending to information in long contexts. For agentic tasks, an additional capability is required: the preservation of an exact state while repeatedly applying rules. We find that this reliability is absent across language models. To demonstrate, we query 126 leading model variants with the task of counting a long string of repeated characters, and we find they all cannot accurately count above a model-dependent, syntax-sensitive counting capacity threshold. Failures are abrupt and persist even with increasing model size, inference time computation, and external tool. Mechanistic probing indicates that models use a finite number of internal states to mimic counting as a rule and fail once these states are exhausted. Furthermore, such states are the basis for performing complex tasks beyond counting. These results indicate that fundamentally new model architectures are required for autonomous agents to achieve truly reliable rule following capabilities.