You just addressed the question I going to ask next. Of course I have no idea why either. I am mystified.
I haven't done anything new since we posted yesterday. But, I woke up this morning and found that, for some unknown reason, Desktop on my Mac appears to also be mirroring what's on iCloud/in the Mobile Documents folder. I haven't checked yet to see if the mappings are one-one, but it looks like it is. This phenomenon is not happening with my Mac's Documents folder. Hummmm, yep, it's a thing them makes me go hummmm. Do you have any thoughts on why this happened. It's too bad we can't make that result occur after the original syncing in both Mac Desktop and Documents folders (at least I don't know how to do it).
I'm unimpressed with the way Desktop and Documents syncing works without optimization even ignoring the hummmm results above. Who knows might have happened if I was using this sync process on more that one machine especially given that I disabled and re-enabled the process once on this machine?
I think that using optimization in connection with sync process on one machine might be OK in principle for me provided I had enough free storage on it to keep "not recently used things" from being removed from the machine. Then, at least I would have a true always up-to-date backup of what's on the synced machine in Desktop and Documents. Still, I wouldn't trust the process very much. So, I'd backup up elsewhere periodically too.
I am writing the next paragraph just to complete the current state of my thoughts on Mac Photo and Document and Desktop syncing.
On the other hand, my experiments imply I could use Photo syncing effectively if I left high-resolution photos on the synced machine and synced my photos to no other machine (which I would have no reason to do). I don't use Photos for organizing my photos (the vast majority of which are not produced using my iPhone). That just wouldn't work for me since I do large amounts of complicated Photoshop editing when I am in that mode. Anyway, I could use Photo syncing from my iPhone to Photos on a Mac to get them easily and automatically from one machine to another. Then, I could export them from Photos/Photos Library for editing and backup elsewhere if I wanted. Also, the backup on iCloud would be up to date very frequently.
Eric, thank you very much for all your thoughts and help both here and everywhere else. And, of course, I'd be interested in any of your thoughts on what I have said in this post.