Pick Up Measure

A pickup note at the end of a repeat is often shown on the final beat of the "end repeat" measure.

So with lyrics, the first syllable of verse 2 will be shown as the final note of verse 1. For an example see this song "Des Baches Wiegenlied" by Schubert: https://musescore.com/user/27638568/scores/4985931

A pickup measure (and its complementary measure, if used) entail changing the actual duration of a measure to something other than what the time signature specifies. Its duration is changed by accessing measure properties via right clicking an empty spot in the measure.
(Also, if the total duration of the notes and rests within a measure does not match the time signature, a small + or - sign will be shown above the measure.)
See:
https://musescore.org/en/handbook/4/pickup-and-non-metered-measures#pic…

In the image above, if the lyrics were entered as DanielR mentions in his post above (with only verse 1 in the pickup), a start repeat barline would be placed after the pickup and a (shortened duration) complementary measure would not be needed at the end as it would contain the verse 2 and verse 3 starting lyrics.