Saving/updating a file stored in iCloud Drive (Windows 10) leads to prompt in the background

When I update and save for example an Excel file I have stored on iCloud Drive, the application freezes and the following prompt appears in the background:

You have to click yes in order to proceed with editing the file. This affects other applications besides Excel aswell.

Honestly, what is this? How can I disable this prompt? This is beyond acceptable, I can't just switch to a prompt to click yes every time I save a file? We have 2021, who thinks that this is great user design? This bug (or feature???) makes iCloud Drive on Windows completely unusable. I switched from Google Drive to a paid iCloud plan a week ago but I didn't know that this software behaves the way it does on Windows.

Are there any plans to fix this in the near future? I mean if I would be in charge of iCloud Drive for Windows this would have top priority right now but it seems like this issue persists for quite some time already. Anyways, I might just switch back to Google Drive or Dropbox and get a paid plan over there.