LLMs don’t do that. Any abstraction they do happens at training time; they cannot dynamically construct new models at inference time. Nor can they commit them to long term memory, because LLMs don’t have such a mechanism. Which, in turn, precludes progressive refinement.
We get around this by using agentic harnesses to pack everything into the context window. (Which itself is something humans don’t really have.) This is why large context windows are so important for most real world tasks: it’s the only way LLMs have to handle information that wasn’t in their training corpus.