Final answer:
The phenoxide anion prefers acting as a nucleophile in an SN2 mechanism on 3-chloro-1,2-propanediol because the electronegative chloride creates an electrophilic carbon that is more reactive towards nucleophilic attack than the deprotonation of an alcohol.
Step-by-step explanation:
The phenoxide anion does not act as a base to deprotonate one of the alcohols on 3-chloro-1,2-propanediol because the presence of the chloride makes that carbon a more electrophilic center, which is highly susceptible to nucleophilic attack.
In an SN2 mechanism, the nucleophile favors attacking an electrophilic carbon, here significantly activated by the chloride leaving group, rather than deprotonating an alcohol which is a less electrophilic and less favorable process.
This is especially true when considering that alcohols are not particularly acidic, and thus their protons are not as easily abstracted by a base as compared to more acidic hydrogens (e.g., hydrogens adjacent to carbonyl groups).
The SN2 reaction is characterized by the simultaneous bond formation by the nucleophile and bond breaking by the leaving group, typically observed in primary alkyl halides. The phenoxide anion is a good nucleophile due to its negative charge, making it highly reactive towards electrophilic carbons, particularly against an atom that bears a good leaving group like chloride.