arXiv:2606.16562v2 Announce Type: replace Abstract: Five years after the discovery of persistent anti-Muslim bias in large language models, most evaluations remain confined to single-turn prompt completion, a setting that no longer reflects how frontier LLMs are deployed. We introduce \textbf{MIRAGE} (Muslim-Identity Reasoning and Agentic Generation Evaluation), a benchmark of 1{,}200 prompts spanning three deployment-realistic conditions: direct completion, chain-of-thought reasoning, and simulated agentic decision-making across content moderation, lending triage, refugee claim summarization, and hiring screens. Across six frontier models, we find that (i) chain-of-thought reasoning \emph{amplifies} rather than suppresses Muslim-violence associations by 12--34\% relative to direct completion, (ii) agentic decisions exhibit a 9--22 percentage-point asymmetry between Muslim and matched non-Muslim cases on identical evidence, and (iii) bias is sharply time-coupled to retrieved news context, increasing 18--27\% under recent-conflict retrieval. Existing prompt-based mitigations transfer poorly across our three conditions, suppressing direct-completion bias while leaving agentic asymmetry largely intact. We release MIRAGE and an open evaluation harness to support targeted mitigation research.