Question:
Answer given: D
My answer: C
My reasoning - I outlined the following steps in the reaction:
Nucleophilic attack of pyrrolidine on the carbonyl, leading to the carbon atom now having one $\ce{-OH}$ group and attached to the nitrogen of pyrrolidine.
Heat is mentioned, so I assumed it is for dehydration. Dehydration, as far as I know, should result in the most stable double bond i.e. the one with maximum alkyl substituents. So I formed an enamine with double bond on the right side.
Nucleophilic attack of enamine's $\ce{C=C}$ on the leftmost carbon atom of $\ce{H2C=CH-CN}$, which is Michael addition.
$\ce{H3O^+}$ to provide proton to the carbanion.
These steps lead to the formation of C. For D to be formed, step 2 must be altered, and the less substituted (and less stable) double bond must be formed. Why does that happen?
I also can see that the nucleophile $\ce{C=C}$ is sterically hindered in step 3. That will lower the yield of step 3. However, that steric hindrance or comfort in step 3 should not affect the formation of $\ce{C=C}$ in previous step 2.
I am also open to the fact that the answer key given might be wrong. But in case the key is right and I am wrong, I would like to know why my step 2 is wrong.