 Solution

The C–C bond anti to the activated N–O bond migrates. This is antiperiplanar migration in the Beckmann rearrangement. Donation from that sigma bond into the developing electron deficiency at nitrogen requires the appropriate antiperiplanar geometry. Migration and leaving-group departure are coupled, giving a nitrilium ion rather than an equilibrating free carbon carbocation. B places the aromatic-side bond in the migrating orientation and therefore gives D; C places the spiro-side bond in that orientation and gives E. The two products consequently record the oxime geometries. A rule based only on which group seems intrinsically more electron rich would miss this geometric constraint; retention of configuration in a migrating group is also consistent with concerted bond migration.