LLM agents are widely used for software development and debugging, but their adoption in embedded systems, especially for wireless tasks, remains limited. This is because embedded development requires hardware-in-the-loop testing. Agents cannot directly observe the spectrum, probe pins, or measure power, so they cannot verify wireless link functionality; currently, human engineers perform this verification. We systematically evaluate whether LLM agents can establish wireless links when provided with hardware access. We introduce LoopHIL, a framework that lets agents control a multi-device RF bench, monitor it with a spectrum analyzer, logic analyzer, and energy meter, and validate links against a verification ladder, all within code-enforced safety limits. Across four increasingly complex tasks, from generating a carrier to backscatter decoding by a commercial receiver, and using six models from two vendors, hardware-in-the-loop increases task completion rates from 54% to 79% and from 17% to 83% on the most challenging task. It also halves task time and output tokens. With debugging tools, agents decrease tag power consumption by up to 96%. However, small models often report unverified claims, so independent hardware checks remain necessary.

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