>Do you think grokking is consistent with implicit regularization as compression
Pretty sure it's been shown that grokking requires L1 regularization which pushes model parameters towards zero. This can be viewed as compression in the sense of encoding the distribution in the fewest bits possible, which happens to correspond to better generalization.
Couldn't have said it better, although this is only for grokking with the modular addition task on networks with suitable architectures. L1 regularization is absolutely a clear form of compression. The modular addition example is one of the best cases to see the phenomenon in action.