diff --git a/docs/userguides/dependencies.md b/docs/userguides/dependencies.md
index 5359dfd036..9e6a8170b2 100644
--- a/docs/userguides/dependencies.md
+++ b/docs/userguides/dependencies.md
@@ -57,6 +57,8 @@ Often times, the `v` prefix is required when using tags.
 However, if cloning the tag fails, `ape` will retry with a `v` prefix.
 Bypass the original failing attempt by including a `v` in your dependency config.
 
+**By knowing if the release is from the version API or only available via tag, and whether the version is v-prefixed or not, you save Ape some time and complexity when installing dependencies.**
+
 ### Python
 
 You can use dependencies to PyPI by using the `python:` keyed dependency type.
diff --git a/src/ape_pm/dependency.py b/src/ape_pm/dependency.py
index 2623dd99aa..a8bd6485f7 100644
--- a/src/ape_pm/dependency.py
+++ b/src/ape_pm/dependency.py
@@ -206,6 +206,11 @@ def fetch(self, destination: Path):
                     "Use `ref:` instead of `version:` for release tags. "
                     "Checking for matching tags..."
                 )
+
+                # NOTE: When using ref-from-a-version, ensure
+                #   it didn't create the destination along the way;
+                #   else, the ref is cloned in the wrong spot.
+                shutil.rmtree(destination, ignore_errors=True)
                 try:
                     self._fetch_ref(version, destination)
                 except Exception:
diff --git a/tests/functional/test_dependencies.py b/tests/functional/test_dependencies.py
index 7685a38b80..fca79885d9 100644
--- a/tests/functional/test_dependencies.py
+++ b/tests/functional/test_dependencies.py
@@ -467,7 +467,7 @@ def test_ref_or_version_is_required(self):
         with pytest.raises(ValidationError, match=expected):
             _ = GithubDependency(name="foo", github="asdf")
 
-    def test_fetch(self, mock_client):
+    def test_fetch_given_version(self, mock_client):
         dependency = GithubDependency(
             github="ApeWorX/ApeNotAThing", version="3.0.0", name="apetestdep"
         )
@@ -533,7 +533,7 @@ def only_want_non_v(n0, n1, vers, pth):
         # The second call does not have the v!
         assert calls[1][0] == ("ApeWorX", "ApeNotAThing", "3.0.0", path)
 
-    def test_fetch_given_version_but_expects_reference(self, mock_client):
+    def test_fetch_given_version_when_expects_reference(self, mock_client):
         """
         Show that if a user configures `version:`, but version fails, it
         tries `ref:` instead as a backup.
@@ -546,7 +546,11 @@ def test_fetch_given_version_but_expects_reference(self, mock_client):
         mock_client.download_package.side_effect = ValueError("nope")
 
         # Simulate only the non-v prefix ref working (for a fuller flow)
-        def needs_non_v_prefix_ref(n0, n1, path, branch):
+        def needs_non_v_prefix_ref(n0, n1, dst_path, branch):
+            # NOTE: This assertion is very important!
+            #  We must only give it non-existing directories.
+            assert not dst_path.is_dir()
+
             if branch.startswith("v"):
                 raise ValueError("nope")