I agree, would be good to see it run on the latest version or the reasons for not
It is using the latest version of Nuxt, PR welcome for updating feathers
I've just created a dummy project using the create nuxt-app and it doesn't list nuxt 1.4.0 as a dependency:

Also want to update versions
@mjbates7 ^ means everything greater than a particular version in the same major range.
Please nuxt 1.4 / vuetify 1.0 or quasar (need author help for release) / feathers 3
upgraded?
https://github.com/nuxt-community/create-nuxt-app/pull/75/files#diff-2c1b5c03cf7ce7b0571fd73c12c762e8R21
I hacked the Express template to make it work with Feathers 3 and be @featherjs/cli compliant, for my personal use. Unfortunately, feathers-vuex is still stuck on Feathers 2.x and Vuex 2.x.
If anyone is interested, here's the final result. If people are OK with the approach, I can submit a PR.
I succesfully use Feathers 3 with Nuxt 2 and Feathers-Vuex using my Nuxt-feathers-vuex module. What issues in particular do you encounter?
featherjs 3 template has been released in create-nuxt-app 2.4.0
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Also want to update versions