.icloud files on Dropbox

Hi all, there seems to be some info online but nothing seems to help. So...I have a new MacBook Pro running Catalina on which I created some PSD files. When I saved them I selected 'save onto your computer' ( I guess I'm old fashioned ) so they appeared on my Desktop. But of course it says in the locations box when I saved 'DESKTOP-icloud'. Didn't think much to that. Anyway I recently dragged them into my Dropbox account. Which of course meant they disappeared from the Desktop. However when I go into Dropbox the files are not readable...and they have .iCloud at the end of the name. I accept that they are a shortcut...that I have simply saved a shortcut onto the Dropbox. But when I search for the file on iCloud is also says 'iCloud' at the end and does not open. I am going mad. Can you help ?!