Carbon-carbon (C-C) bonds are ubiquitous but are among the least reactive bonds in organic chemistry. Recently, catalytic approaches to activate C-C bonds by transition metals have demonstrated the synthetic potential of directly reorganizing the skeleton of small molecules. However, these approaches are usually restricted to strained molecules or rely on directing groups, limiting their broader impact. We report a detailed mechanistic study of a rare example of catalytic C-C bond cleavage of unstrained alcohols that enables reversible ketone transfer hydroarylation under Rh-catalysis. Combined insight from kinetic analysis, in situ nuclear magnetic resonance (NMR) monitoring, and density functional theory (DFT) calculations supports a symmetric catalytic cycle, including a key reversible β-carbon elimination event. In addition, we provide evidence regarding the turnover-limiting step, the catalyst resting state, and the role of the sterically encumbered NHC ligand. The study further led to an improved catalytic system with the discovery of two air-stable precatalysts that showed higher activity for the transformation in comparison to the original conditions.