Everything should live in the repo. Code and docs yes. But also the planning files, epics, work items, architectural documentation and decisions. Here is a small example of my Linux system doc: https://github.com/gchamon/archie/tree/main/docs
And you don't need to reinvent the wheel. Code docs can like either right next to it in the readme or in docs/ if it's too big for a single file or the context spams multiple modules. ADRs live in docs/architecture/decisions. Epics and Workitems can also live in the docs.
Everything is for agents and everything is for humans, unless put in AGENTS.md and docs/agents or something similar, and even those are for human too.
In a nutshell, put everything in the repo, reuse standards as much as possible, the idea being it's likely the structure is already embedded in the model, and always review documentation changes.