diff --git a/playground/package.json b/playground/package.json
index e10c2c2f..f7f47b1a 100644
--- a/playground/package.json
+++ b/playground/package.json
@@ -7,6 +7,6 @@
     "nuxi": "node ../bin/nuxi.mjs"
   },
   "dependencies": {
-    "nuxt": "latest"
+    "nuxt": "npm:nuxt-nightly@4.0.0-28826691.eaeda4ee"
   }
 }
diff --git a/src/commands/upgrade.ts b/src/commands/upgrade.ts
index 9562f778..fd72a8ba 100644
--- a/src/commands/upgrade.ts
+++ b/src/commands/upgrade.ts
@@ -172,6 +172,10 @@ export default defineCommand({
     const upgradedVersion = (await getNuxtVersion(cwd)) || '[unknown]'
     consola.info('Upgraded Nuxt version:', upgradedVersion)
 
+    if (upgradedVersion === '[unknown]') {
+      return
+    }
+
     if (upgradedVersion === currentVersion) {
       consola.success('You\'re already using the latest version of Nuxt.')
     }
@@ -182,6 +186,9 @@ export default defineCommand({
         'to',
         upgradedVersion,
       )
+      if (currentVersion === '[unknown]') {
+        return
+      }
       const commitA = nuxtVersionToGitIdentifier(currentVersion)
       const commitB = nuxtVersionToGitIdentifier(upgradedVersion)
       if (commitA && commitB) {