While the arguments for a hydroxamic acid seem reasonable, I don't consider them conclusive. Let us assume the reaction is concerted, no nitrene forms, and hydroxamic acid is a by-product. That would simply mean that another mechanism is competing, such as direct substitution. Similarly, let us assume the reaction is stepwise, a nitrene intermediate is present, and no hydroxamic acid is produced. Then the intramolecular rearrangement is simply faster than the intermolecular reaction.
I doubt that concerted versus stepwise can be determined in this forum. I however prefer to take the philosophic position that all reactions are stepwise. That is, if time can be broken into infinitely small units, then it becomes impossible for three balls to collide simultaneously. One will always collide before the other. (That was Jeremy Knowles' argument as I recall.) I find that philosophic position to be more useful than concerted options. I prefer to think of bromination reactions, hydroboration reactions, addition of HX, mercuration reactions, and others as stepwise. That allows an alkene to react as the nucleophile and polarizations are consistent with carbocation stabilities. It also avoids the awkwardness of suggesting 2 + 2 electrocyclic reactions. I have even read arguments that Diels-Alder reactions are actually not concerted. Indeed, I think of the Hammond Postulate about intermediates being reactant-like or product-like anticipating electron movements not being concerted. If they were concerted, there should be no difference. I only use concerted mechanisms if a stepwise mechanism provides no insight to how a reaction may take place or how its products might be controlled.
For the purpose of this question, I think it is doubtful that we could come to a categoric decision on whether a nitrene is involved or not. I suspect that we could find some examples that are more nitrene-like and others not. That is frequently the case with many reactions. The more closely we examine the steps and the strength of the proof, we may find that we really cannot determine one versus another.
The problem with this question is not about what the mechanism is, but rather what the questioner expects. This is common to this forum, posters have to try to guess what was discussed in a class they did not attend to give an answer. If a professor is going to favor one answer versus another, I would ask him which he preferred if I hoped to give that answer to his question. (I hope you see that answer as different from the philosophic question about what the mechanism or mechanisms actually is.)