Surprising equilibration: A new mechanism for the title reaction is supported by DFT calculations and experimental observations. The CI and OI intermediates are isoenergetic and equilibrate quickly. Thus, any chiral information induced in the initial complex will be destroyed. In the final CC bond‐forming step, a [2,3]‐rearrangement from the OI bonded intermediate is slightly preferred over the [1,2]‐elimination from the CI bonded isomer (see scheme).