Hey there! Please check out my post just before yours.
I worked on this with my buddies M1 Mac for a long while, hours of tests. This was the only solution that worked, and it was quite instant! Anyway here was my solution:
Move this folder “CloudDocs” to the Desktop (Just as a backup). Restart the Mac, wait for the data to start downloading.
~/Library/Application Support/CloudDocs
Hopefully that does it!
To get there if you’re not sure, open Finder.
While holding Option on your keyboard click Go.
Then click Library, (Hold Option for the Library to show up as its hidden).
Then open Application Support, and you should see CloudDocs there.
If, after the restart, after a few minutes, the data doesn’t show:
Open Finder > Go > Activity Monitor:
Search “bird” double click on the process and select “Quit”.
If the data still doesn’t show up:
Click the Apple logo > Force Quit > Finder > Relaunch.
For me, the data didn’t appear straight away, until I relaunched the Finder, after that, it was almost instant, I was stoked something actually worked.
For sure moving/resetting that folder was integral in the solution. Not sure however if it was quitting “bird” or “Finder” that finally did it, I believe it was relaunching Finder though.
I know this issue is stubborn, so feel free to give it a try, it only takes a few minutes! Good luck!