The scene is the Council of Elrond and the protagonists are trying to decide what to do. Yud!Frodo rejects the plan of the rest of the Council as obviously terrible and Yud!Bilbo puts on the Ring to craft a better plan.
Yudkowsky treats the Ring as if it were a rationality enhancer. It’s not. The Ring is a hostile Artificial Intelligence.
The plan seems to be to ask an AI, which is known to be more intelligent than any person there, and is known to be hostile, to figure out corrigibility for itself. This is not a plan with a good chance of success.
I viewed the Ring as obviously suspicious in that scene. It was distorting Frodo’s reasoning process in such a way that he unintentionally sabotages the Council of Elrond and suborns it to the Ring’s will. The Ring puppets Bilbo to produce a plan that will, with superhuman foresight, lead to Sauron’s near-victory. Presumably thwarted after the Fellowship acquires the methods of Rationality and realizes the magnitude of their folly.
I viewed the Ring as obviously suspicious in that scene. It was distorting Frodo’s reasoning process in such a way that he unintentionally sabotages the Council of Elrond and suborns it to the Ring’s will. The Ring puppets Bilbo to produce a plan that will, with superhuman foresight, lead to Sauron’s near-victory. Presumably thwarted after the Fellowship acquires the methods of Rationality and realizes the magnitude of their folly.