I had same exact experience with macOS and iCloud. macOS by default enables offloading Documents to cloud, transparently. Problem is if you try to get those files back to store them offline, it gets very tricky very quickly with ambiguous verbiage and lengthy process that you never actually know status of. I ended up losing some files as a result, which came as a total shock to me. I was already in the process of moving back to Linux (hence downloading of the Documents) and this was final straw.
This is very annoying, but there’s a right click and force keep downloaded that reflags the folder and all items within it.
These is some weird bs there and it automagically sends everything up.
Despite stuff being placed on the drive, it decides to upload them and only have a cloud copy. I thought maybe it was me that caused this, then it happened to a family member overnight.
It’s painful.