Here is the link to the paper https://www.davidsilver.uk/wp-content/uploads/2020/03/mc_aixi_long.pdf
Definition 2. An environment $\rho$ is a sequence of conditional probability functions $\{ \rho_0, \rho_1, \rho_2, ...\}$, where $\rho_n: A^n \rightarrow Density(X^n)$ that satisfies
$$ \forall a_{i:n} \forall x_{<n} : \rho_{n-1}(x_{<n}|a_{<n}) = \sum_{x_n \in X} \rho_n (x_{1:n} | a_{1:n})$$
In the base case, we have $\rho_0(\epsilon | \epsilon) = 1$
Ok so the right hand side seems to be saying, that $x_{1:n}$ will be made from $x_{<n}$ concatenated with $x_n \in X$, and the sum will be over these different realizations of $x_{1:n}$, so the probability function for the shorter sequence $\rho_{n-1}(x_{<n} | a_{<n})$ depends on the possible longer sequences? This seems to be what the equation is saying but it doesn't make sense that the present probability of a sequence depends on possible future outcomes.