What exactly is the Knit Directory > Project Directory button doing?

I like the new knit button where you can select Knit Directory > Project Directory. BUT I can't figure out what to type in the console to recreate this... I want to know so I could put this in a Makefile, for example. I think the Knit button using rmarkdown::render, but from reading the docs, I still cannot figure out how to replicate Knit Directory > Project Directory from the console.

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It works by setting the knit_root_dir parameter to rmarkdown::render. You can set this yourself to the project root in your Makefile to get the same behavior.

https://www.rdocumentation.org/packages/rmarkdown/versions/1.6/topics/render

OK, helpful to get me started. So I can replicate what the button now does. But I want to also use the output_dir argument to put the rendered docs and figs in my doc directory, while the .Rmd I render from, lives in the src directory. I can do this, but it seems when you use knit_root_dir on its own, you get relative paths to figures in the rendered .md file, while when you use knit_root_dir & output_dir it switches back to absolute paths. Very frustrating... As then when, for example you put the rendered docs on Github, you can't see the figures...

I can do exactly what I want when I use the ezknitr package... it would be nice if this could be done through the more widely-used rmarkdown package... Perhaps I need to open an issue in that dev repo...