Hello JimTsar,
It sounds like you're experiencing some issues with the iCloud Drive on your Mac. We will be happy to help.
Is this a work computer, or a home computer? If it is a work computer, or if you have a work profile on it, that could be why you're seeing iCloud Drive greyed out.
This article can help you look for configuration profiles: Use configuration profiles to standardize settings on Mac computers
If that doesn't help, then let's make sure that you do not have restrictions turned on. This article can help you check: Set up content and privacy restrictions in Screen Time on Mac
Please have a look and let us know if this helps.