diff --git a/README.md b/README.md
index 0954afc..c7e408b 100644
--- a/README.md
+++ b/README.md
@@ -45,7 +45,7 @@ Bluetooth Proxies seem to be far more reliable now, so, if you have that option
 Ensure you have at least one [Bluetooth Proxy](https://www.home-assistant.io/integrations/bluetooth/#remote-adapters-bluetooth-proxies) setup with Home Assistant that supports **active connections**.
 Currently, that only includes ESPHome proxies with firmware 2022.9.3 or later. In theory, you can have multiple proxies setup throughout the house as well.
 
-### Option 2 - [Home Assistant's Bluetooth Integration](https://www.home-assistant.io/integrations/bluetooth/) with integrated adapter or dongle
+#### Option 2 - [Home Assistant's Bluetooth Integration](https://www.home-assistant.io/integrations/bluetooth/) with integrated adapter or dongle
 
 Ensure you have the [Home Assistant Bluetooth Integration](https://www.home-assistant.io/integrations/bluetooth/) enabled and have integrated Bluetooth or Bluetooth Dongle setup with it.
 It is recommended to use one of the [officially supported adapters](https://www.home-assistant.io/integrations/bluetooth/#known-working-adapters).
diff --git a/custom_components/ember_mug/__init__.py b/custom_components/ember_mug/__init__.py
index 2c2952e..2601e49 100644
--- a/custom_components/ember_mug/__init__.py
+++ b/custom_components/ember_mug/__init__.py
@@ -173,13 +173,15 @@ async def async_migrate_entry(hass: HomeAssistant, config_entry: ConfigEntry):
         # No migrations to run
         return False
 
-    config_entry.version = 3
-
     old_data = {**config_entry.data}
+    if config_entry.version == 1:
+        old_data[CONF_ADDRESS] = old_data[CONF_MAC]
+
+    config_entry.version = 3
     hass.config_entries.async_update_entry(
         config_entry,
         data={
-            CONF_ADDRESS: old_data.get(CONF_MAC, old_data.get(CONF_ADDRESS)),
+            CONF_ADDRESS: old_data[CONF_ADDRESS],
             CONF_NAME: old_data[CONF_NAME],
         },
         options={
diff --git a/tests/__init__.py b/tests/__init__.py
index 25b81a4..fcd3f98 100644
--- a/tests/__init__.py
+++ b/tests/__init__.py
@@ -2,10 +2,12 @@
 from unittest.mock import patch
 
 from bleak.backends.scanner import AdvertisementData, BLEDevice
-from ember_mug.consts import DEFAULT_NAME
+from ember_mug.consts import DEFAULT_NAME, TemperatureUnit
 from home_assistant_bluetooth import BluetoothServiceInfoBleak
 from homeassistant.const import CONF_ADDRESS, CONF_MAC, CONF_NAME, CONF_TEMPERATURE_UNIT
 
+from custom_components.ember_mug import CONF_DEBUG
+
 
 def patch_async_setup_entry(return_value=True):
     """Patch async setup entry to return True."""
@@ -24,11 +26,17 @@ def patch_async_setup_entry(return_value=True):
     CONF_ADDRESS: TEST_MAC,
     CONF_NAME: TEST_MUG_NAME,
 }
-V1_CONFIG_DATA = {
+CONFIG_DATA_V1 = {
     CONF_MAC: TEST_MAC,
     CONF_NAME: TEST_MUG_NAME,
     CONF_TEMPERATURE_UNIT: "°C",
 }
+CONFIG_DATA_V2 = {
+    CONF_ADDRESS: TEST_MAC,
+    CONF_NAME: TEST_MUG_NAME,
+    CONF_TEMPERATURE_UNIT: TemperatureUnit.CELSIUS,
+    CONF_DEBUG: True,
+}
 
 MUG_SERVICE_INFO = BluetoothServiceInfoBleak(
     name=MUG_DEVICE_NAME,
diff --git a/tests/test_init.py b/tests/test_init.py
index e0a55b9..a4bf505 100644
--- a/tests/test_init.py
+++ b/tests/test_init.py
@@ -1,18 +1,21 @@
 """Test Ember Mug Integration init."""
+from typing import Any
 from unittest.mock import AsyncMock, Mock, patch
 
+import pytest
 from homeassistant.config_entries import ConfigEntryState
 from homeassistant.core import HomeAssistant
 from pytest_homeassistant_custom_component.common import MockConfigEntry
 
 from custom_components.ember_mug import DOMAIN
-from custom_components.ember_mug.const import CONFIG_VERSION
+from custom_components.ember_mug.const import CONF_DEBUG, CONFIG_VERSION
 from tests import (
+    CONFIG_DATA_V1,
+    CONFIG_DATA_V2,
     DEFAULT_CONFIG_DATA,
     MUG_SERVICE_INFO,
     TEST_MAC_UNIQUE_ID,
     TEST_MUG_NAME,
-    V1_CONFIG_DATA,
 )
 
 
@@ -50,25 +53,35 @@ async def test_init(
     assert mock_config_entry.state is ConfigEntryState.NOT_LOADED
 
 
+@pytest.mark.parametrize(
+    ("start_version", "input_config", "expected_options"),
+    [
+        (1, CONFIG_DATA_V1, {CONF_DEBUG: False}),
+        (2, CONFIG_DATA_V2, {CONF_DEBUG: True}),
+    ],
+)
 @patch(
     "custom_components.ember_mug.bluetooth.async_last_service_info",
     return_value=MUG_SERVICE_INFO,
 )
 @patch("custom_components.ember_mug.EmberMug._update_multiple", return_value=[])
 @patch("custom_components.ember_mug.asyncio.Event", new=AsyncMock)
-async def test_init_migration(
+async def test_init_migration_v1(
     mock_setup: Mock,
     mock_update_multiple: Mock,
     hass: HomeAssistant,
+    start_version: int,
+    input_config: dict[str, Any],
+    expected_options: dict[str, bool],
 ):
     """Test upgrading from V1 config to V3."""
     mock_config_entry = MockConfigEntry(
         domain=DOMAIN,
         title=TEST_MUG_NAME,
-        data=V1_CONFIG_DATA,
+        data=input_config,
         options=None,
         unique_id=TEST_MAC_UNIQUE_ID,
-        version=1,
+        version=start_version,
     )
     mock_config_entry.add_to_hass(hass)
     await hass.config_entries.async_setup(mock_config_entry.entry_id)
@@ -77,3 +90,4 @@ async def test_init_migration(
     assert mock_config_entry.state is ConfigEntryState.LOADED
     assert mock_config_entry.version == CONFIG_VERSION
     assert mock_config_entry.data == DEFAULT_CONFIG_DATA
+    assert mock_config_entry.options == expected_options