The starter kit instructions (https://lit.dev/docs/tools/starter-kits/#try-out-your-project) tell you to access the project demo at http//localhost:8000/dev/ ... However, the new WDS-based serve command has its root in the /docs/ folder, so you can't access the demo.
There's a separate docs:serve command that sets the root dir to /docs/, so this just seems like an oversight in the config.