Can I setup WordPress in a subdirectory and then point my URL to the subdirectory when I’m ready to go live?

I have a client that has a current WordPress installation in their website root, and they are creating a new WordPress site which is in a subdirectory during development. My question is, what do I do when they are ready to go live and replace their current WordPress install with the new dev version? Can they just point their main URL to the subdirectory instead of having to move the entire dev site into the root of their website? Will this work with WordPress?

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