diff --git a/doc/nbgv-cli.md b/doc/nbgv-cli.md
index 3c9f46af7..69b295a9f 100644
--- a/doc/nbgv-cli.md
+++ b/doc/nbgv-cli.md
@@ -22,8 +22,9 @@ It will also add/modify your `Directory.Build.props` file in the root of your re
 If scripting for running in a CI build where global impact from installing a tool is undesirable, you can localize the tool installation:
 
 ```ps1
-dotnet tool install --tool-path . nbgv
+dotnet tool install --tool-path my/path nbgv
 ```
+> Ensure your custom path is outside of your git repository, as the `nbgv` tool doesn't support uncommited changes
 
 At this point you can launch the tool using `./nbgv` in your build script.
 
@@ -41,7 +42,7 @@ The `prepare-release` command automates the task of branching off the main devel
 The `prepare-release` command supports this working model by taking care of
 creating the release branch and updating `version.json` on both branches.
 
-To prepare a release, run:
+To prepare a release, first ensure there is no uncommited changes in your repository then run:
 
 ```ps1
 nbgv prepare-release
diff --git a/src/NerdBank.GitVersioning/ReleaseManager.cs b/src/NerdBank.GitVersioning/ReleaseManager.cs
index d6fd752a6..af5f9fd18 100644
--- a/src/NerdBank.GitVersioning/ReleaseManager.cs
+++ b/src/NerdBank.GitVersioning/ReleaseManager.cs
@@ -324,9 +324,12 @@ private LibGit2Context GetRepository(string projectDirectory)
         RepositoryStatus status = libgit2context.Repository.RetrieveStatus();
         if (status.IsDirty)
         {
-            var changedFiles = status.OfType<StatusEntry>().ToList();
+            // This filter copies the internal logic used by LibGit2 behind RepositoryStatus.IsDirty to tell if
+            // a repo is dirty or not
+            // Could be simplified if https://github.com/libgit2/libgit2sharp/pull/2004 is ever merged
+            var changedFiles = status.Where(file => file.State != FileStatus.Ignored && file.State != FileStatus.Unaltered).ToList();
             string changesFilesFormatted = string.Join(Environment.NewLine, changedFiles.Select(t => $"- {t.FilePath} changed with {nameof(FileStatus)} {t.State}"));
-            this.stderr.WriteLine($"Uncommitted changes ({changedFiles.Count}) in directory '{projectDirectory}':");
+            this.stderr.WriteLine($"No uncommitted changes are allowed, but {changedFiles.Count} are present in directory '{projectDirectory}':");
             this.stderr.WriteLine(changesFilesFormatted);
             throw new ReleasePreparationException(ReleasePreparationError.UncommittedChanges);
         }