I have a general question regarding non-solvent developers. In the general case, does increasing dilution reduce grain size? That seems to be case with some of developers I've been using. I guess the real question is why? I would think that as sharpness increases (due to increased dilution), the grain would be more pronounced.
I think the answer is a little more complicated. If you increase the dilution, and if the developer is not well buffered, the ph will drop. Two things happen. First, the gelatin may not swell nearly as much. That alone can affect the appearance of grain. Second, the developer's activity will slow down. That reduces contrast. Less contrast = less apparent grain.
I should have anticipated there were more complex processes at play. My initial thoughts leaned towards the developer having increased compensating effects of high dilutions, which I believe can mask grain, and a lower pH, which discourages grain clumping.