It’s a misconception that transformers reason in token space. Tokens don’t attend to other tokens. High dimensional latents attend to other high dimensional latents. The final layer of a decoder only transformer has full access to entire latent space of all previous latents, the same latents you can project into a distribution of next tokens.
But yeah, the LLM doesn’t even know the sampler exists. I used the last layer as an example, but it’s likely that reasoning traces exist in the latent space of every layer not just the final one, with the most complex reasoning concentrated in the middle layers.
Reasoning is definitely not happening in the linear projection to logits if that’s what you mean.