I got to know about what neighboring group participation is, but does it always occur if there are lone pair donating groups in beta or delta positions. Or does it only occur in some kind of medium or is there any specific condition that is required?
For example, I have attached a picture below. I was solving some problems on this topic and came across this one.
The product I expected an epoxide(diazotization followed by attack of lone pair of oxygen) ,
But the answer given was a Ring contraction followed by formation of an aldehydic group,
So, to be clear, Why didn't Neighboring group participation take place, or in this case why an epoxide wasn't formed?