See the article https://support.apple.com/en-us/HT203052
You must turn on iCloud Drive , see the section Turn on Desktop and Documents in the article https://support.apple.com/en-us/HT206985
As iPhone and Mac are signed in with Apple ID and password on the same network the files will again sync to Mac .
Regarding iCloud Drive ( archive ) folder the files will get saved when Mac is not connected to iPhone / synced .
In that scenario you have to uncheck the box of iCloud Drive .
open system preferences > iCloud and uncheck the box of iCloud Drive a pop up window appears , showing to keep a copy of documents , and remove from the Mac .
( a ) if you had clicked on keep a copy , they will be archived in home folder that can be viewed by clicking on finder in the dock , take cursor on top menu bar > Go > Home > your user name > iCloud Drive ( Archive ) .

Again double click on empty iCloud Drive box it will show setting up the complete files will start syncing from icloud server .
You also inquired if you sign out Apple ID from system preferences in Mac OS catalina 10.15.6 the issue persists , sorry I can explain in the next post how to configure ( sign in again with same Apple ID and password with screen shots ) and once again sync files using a single Mac OS catalina 10.15.6 that is set up with 2FA , as there is limitation to add massive words .