It’s based on how it is stored on your device. The database starts at your tree and works down.
For example, I can see immediately where it stopped because the last “folder” shown in folder navigation is “rock albums” and the last band showing is U2. Therefore, I can see that’s exactly where the database stopped. Any files located in my file structure past Rock Albums/U2 is invisible.
My entire “seasonal music” or “world music” folder is gone and no songs in those folders are navigatable.