During a quantum measurement, superpositions of states with different observable properties probabilistically collapse into one with a sharp value of the measured observable. In macroscopic quantum systems, this collapse arises via a continuous measurement-induced phase transition (MIPT) at a critical value of the strength of interaction with the measurement apparatus. MIPTs lie outside established paradigms for equilibrium or nonequilibrium critical phenomena and delineate distinct, stable dynamical and computational phases of matter. Quantum computers enable programmable simulation of the interaction of a measurement apparatus with a dynamical quantum system, to explore MIPT phenomena over a range of system sizes while retaining quantum coherence. Yet, existing experimental protocols rely on fundamentally nonscalable postselection techniques or direct classical simulation of quantum circuits. Here, we report the scalable observation of finite-size scaling evidence for an observable-sharpening MIPT in monitored quantum circuits in a chain of Yb+171 ions in Quantinuum’s H1-1 trapped-ion quantum processor. By leveraging an equivalent description as a statistical physics problem, we implement scalable classical algorithms to infer the value of the measured observable from a single experimental shot. This technique enables a truly scalable protocol to observe observable-sharpening MIPTs in generic classes of circuits that cannot be directly classically simulated and also provides enhanced means to detect and suppress errors in the quantum simulation. Published by the American Physical Society 2024