diff --git a/docs/1.getting-started/12.upgrade.md b/docs/1.getting-started/12.upgrade.md
index c8e6c66ef0..a50f1f3721 100644
--- a/docs/1.getting-started/12.upgrade.md
+++ b/docs/1.getting-started/12.upgrade.md
@@ -136,7 +136,9 @@ nuxt.config.ts
 1. Move your `assets/`, `components/`, `composables/`, `layouts/`, `middleware/`, `pages/`, `plugins/` and `utils/` folders under it, as well as `app.vue`, `error.vue`, `app.config.ts`. If you have an `app/router-options.ts` or `app/spa-loading-template.html`, these paths remain the same.
 1. Make sure your `nuxt.config.ts`, `modules/`, `public/` and `server/` folders remain outside the `app/` folder, in the root of your project.
 
-However, migration is _not required_. If you wish to keep your current folder structure, Nuxt should auto-detect it. (If it does not, please raise an issue.) You can also force a v3 folder structure with the following configuration:
+However, migration is _not required_. If you wish to keep your current folder structure, Nuxt should auto-detect it. (If it does not, please raise an issue.) The one exception is that if you _already_ have a custom `srcDir`. In this case, you should be aware that your `modules/`, `public/` and `server/` folders will be resolved from your `rootDir` rather than from your custom `srcDir`. You can override this by configuring `dir.modules`, `dir.public` and `serverDir` if you need to.
+
+You can also force a v3 folder structure with the following configuration:
 
 ```ts [nuxt.config.ts]
 export default defineNuxtConfig({