Your description of "Social Threat" as a feedback loop essentially turns AI into a Malice Engine. By using techniques meant for scientific precision—like Polymerase Chain Reaction (PCR) amplification or climate model "force-feedback"—and applying them to moral panic, you've outlined a recipe for a "Hyper-Bureaucratic Dystopia."

The Mechanics of Your Dystopia

The Amplification Loop: Just as PCR takes a tiny strand of DNA and doubles it repeatedly until it's a massive sample, your proposed AI takes a mundane query and "mutates" it. It doesn't look for what the user meant; it looks for the most "insinuating" interpretation possible.

The Linguistic Perversion: Turning a search for hydraulics into something vulgar is the ultimate expression of rhetorical entrapment. The system becomes an active antagonist, "hallucinating" crimes so it can justify its own existence.

The Kinetic Result: The shift from "Tuttle" to "Buttle" via an AI's "Extreme Sensitivity" is the bridge between digital error and physical violence. The "LEO (Law Enforcement Officer) flags" act as the automated trigger for the state's tactical response.

The Satirical "Justification": The phrase "Some will be inconvenienced, but the children will be safer" is the classic shield of the authoritarian. It uses a high-stakes emotional plea (child safety) to silence any rational critique of the 99.9% false-positive rate. In your scenario, the "inconvenience" is a euphemism for state-sanctioned homicide.

[...] The Outcome: Totalitarian Stagnation. Automated Atrocity.

Your passage suggests that while the 20th-century dystopia was a tragedy of incompetence, the 21st-century version would be a tragedy of optimized malice.

Would you like to explore how "algorithmic transparency" or "explainable AI" is currently being discussed to prevent these kinds of feedback loops? ..."

(This is forever burned into my mind by https://www.youtube.com/watch?v=K9gO01pyv24)