 Solution

CO first dissociates from the 18-electron Fischer carbene. Pyridyl nitrogen of C then coordinates at the vacant chromium site, positioning an ortho C-D bond of its phenyl group beside the carbene unit.

The appropriate pathway is oxidative hydrogen migration: chromium assists C-D cleavage while D transfers to the electrophilic carbene carbon. The resulting cyclometalated intermediate has both an aryl-Cr bond and an alkyl-Cr bond, the latter to $\mathrm{C}(\mathrm{D})(\mathrm{OEt})(\mathrm{o}-\mathrm{tolyl})$. Formally Cr(0) becomes Cr(II). Reductive elimination between those two carbon ligands forms the new aryl–$\mathrm{C}(\mathrm{D})(\mathrm{OEt})(\mathrm{o}-\mathrm{tolyl})$ bond and returns chromium to low oxidation state.

This accounts for all three controls. Extra CO suppresses the coordinative vacancy. Biphenyl E lacks the pyridyl-N directing group and cannot organize the necessary C-H activation geometry. The ortho deuterium moves onto the former carbene carbon rather than being lost to solvent: four D remain on the original phenyl ring and the fifth becomes the benzylic C-D bond.

This is not adequately represented as electrophilic aromatic substitution followed by proton loss, which would discard the diagnostic D. The primary mechanistic study distinguishes oxidative hydrogen migration/reductive elimination from that classical alternative.^[ref]