It's selective: The title reaction involves palladium(0)-catalyzed insertion of C≡C bonds into benzylic C(sp(3))-H bonds, thus providing efficient access to 2-methylene-2,3-dihydrobenzofurans, which transform into benzofurans upon treatment with a weak acid (e.g., AcOH) and electrophiles. The alkynoxy group serves as a directing group in promoting C-H bond functionalization.
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Minami et al. (2013) studied this question.
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