(2R,3S)-3-phenylcyclohexa-3,5-diene-1,2-diol + NAD(+) = biphenyl-2,3-diol + H(+) + NADH Xenobiotic degradation; biphenyl degradation; 2-hydroxy-2,4-pentadienoate and benzoate from biphenyl: step 2/4. Has a 50-fold preference for NAD over NADP. Belongs to the short-chain dehydrogenases/reductases (SDR) family.