This episode introduces the concept of isomorphic dysfunction, a radical theory claiming that the failures of human behavior, computer software, and social institutions share an identical structural architecture. Rather than viewing stubbornness or corruption as moral flaws, the author defines intelligence as a regulatory system under constraint that inevitably breaks down when its internal rules lose alignment with reality. These systemic glitches occur through four universal dynamics—self-model preservation, error suppression, optimization under scarcity, and feedback reinforcement—which can lead to "model lock-in" or "reward hacking" regardless of the system's physical makeup. Ultimately, the source argues that solving these problems requires shifting from moral judgment to system administration, suggesting that reducing the "cost of error" is the only way to allow a dysfunctional system to update and heal.