Question about iCloud

I have one of the brand new MacBook Pro 14" and I love it. I migrated items from my 2019 iMac; both are running Monterey and everything is up to date. My problem is that my iMac Document Folder is in iCloud which is where I want it, but it is also in the MBP's Document folder. I do not want two copies of all of my documents. I delated the folders in my Documents Folder on my MBP, but it was also deleted from iCloud and also from my iMac. Thank goodness for good backups.

I would like to have each of the Computers' Document Folders backed up to iCloud so I can access each from either computer. I do not want 2 copies of the same folders on each computer. My iPad works fine doing this and so did my 2013 MBP. What did I do wrong? And how do I fix it.