diff --git a/articles/migrate/migrate-virtual-machine-extension-reference.md b/articles/migrate/migrate-virtual-machine-extension-reference.md
index c0f3499f5c4b..1a76f3b7c44b 100644
--- a/articles/migrate/migrate-virtual-machine-extension-reference.md
+++ b/articles/migrate/migrate-virtual-machine-extension-reference.md
@@ -172,6 +172,10 @@ New-AzConnectedMachineExtension `
 
 The extension uses the Arc-enabled server's managed identity to authenticate with Azure Migrate. No other permissions are required on the Azure Migrate project; the project automatically accepts data from Arc-enabled servers within its configured scope.
 
+> [!NOTE]
+> In order for the extension to send data to your Azure Migrate project, ensure that the project's system-assigned managed identity is assigned the **Migrate Arc Discovery Reader - Preview** role on the
+> configured scopes containing your Arc-enabled servers.
+
 ## Extension status and health
 
 ### View extension status
@@ -219,6 +223,7 @@ az connectedmachine extension show \
 | Extension installation fails | Insufficient permissions | Verify you have **Hybrid Server Resource Administrator** role |
 | Extension shows Failed status | Network connectivity issue | Verify connectivity to regional endpoint |
 | Extension installed but data not appearing in project | Project configuration incorrect | Verify project ID and region in extension settings |
+| Extension installation successful, but status later changes to Failed | Incorrect project scope | Verify that the Azure Migrate scope contains your Arc-enabled servers |
 
 ## Update and removal
 
@@ -248,4 +253,4 @@ az connectedmachine extension delete \
 - [Enable additional data collection for Arc-enabled servers](how-to-enable-additional-data-collection-for-arc-servers.md)
 - [Create a migrate project for Arc resources](quickstart-evaluate-readiness-savings-for-arc-resources.md)
 - [Manage sync of Arc resources to Azure Migrate project](how-to-manage-arc-resource-sync.md)
-- [Create assessments](how-to-create-assessment.md)
\ No newline at end of file
+- [Create assessments](how-to-create-assessment.md)