Abstract: Compact JEPA world models enable efficient latent-space planning, but low-dimensional representation trained under reward-free self-supervision must encode both action-conditioned dynamics and predictable visual context. This competition can entangle controllable state with high-rank nuisance appearance and degrade planning as scenes become more complex. We introduce LRC-JEPA, a lightweight end-to-end world model that routes information into a compact predictive latent $\mathbf{z}$ and learned-query residual-context embeddings $\mathbf{u}$. Only $\mathbf{z}$ is propagated by the dynamics model and used for planning, while $\mathbf{u}$ captures temporally persistent information for cross-attention reconstruction; a differentiable residual connection encourages the latent to retain complementary dynamic content. Under explicit assumptions, we show that the resulting representation is sufficient, minimal, nuisance-invariant, and disentangled. Across four simulated control environments, LRC-JEPA improves average planning success over a parameter-matched JEPA baseline by 9 percentage points and matches or exceeds substantially larger pretrained models. On the real-world Bridge-v2 set, its 5.5M-parameter active encoder outperforms DINO-WM (22.1M) and V-JEPA2 (303.9M) encoders while also enabling faster planning. Physical-state probes, reconstruction interventions, and ablations confirm the effectiveness of LRC-JEPA's representation disentanglement.