Recent fracture experiments showed that introducing a circumferential notch in round bars of hot-rolled AZ31 can significantly increase the strain-to-fracture during in-plane tension. Here, we study the state of damage in deformed hot-rolled AZ31 notched bars with two different geometries, using interrupted experiments along with X-ray microtomography analyses. Numerous voids/microcracks, originating from second phase particles, are found in the microstructure. Irrespective of their origin, voids/microcracks blunt to various degrees. Despite blunting processes during plastic deformation, voids at failure are still oblate. At moderate triaxialities, multiple macrocracks initiate near the center of the notch and grow along the rolling direction. These cracks, then, link-up along the through-thickness direction via shear bands and form a zig-zag pattern. At high triaxialities, macrocracks initiate near the free surface. Crack extension in this specimen proceeds without much blunting of the crack-like voids, leading to a seemingly brittle fracture path.