iCloud on Mac - can't delete or move or open files

I have a huge issue with iCloud on MacPro.

I can save files to iCloud in Finder, but right after they are there I can't open them, edit, delete, move - nothing. Also I can't attach any of iCloud files to emails etc.

Nevertheless, I can see a preview of the content without any problem. And when I go to Web iCloud all files are there, look great, I can work with them normally.

It seems as if syncing is not active at all on Mac.https://youtu.be/Wvo5Dusna4c

I've already signed out from iCloud on Mac twice, I've checked all the settings and options. Nothing helps.

I am paying subscription for my iCloud cos I figure that Apple has the best cloud service. Not sure anymore. My dropbox, onedrive, box are all working without any issues on Mac for the last couple of years. With iCloud I have these issues all the time.

Apple Support please solve this issue!!!

PS: last time I tried to move one file, for the first time I got an error -36 and nothing else.