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I'm searching for the specific mechanism why Spotlight starts failing to search iCloud files and not the generalized information about Spotlight system preferences, Search Results, Privacy, etc, etc which don't apply in this case.
Is it just another Apple bug? Once knowing why Spotlight fails to search iCloud, then it would be reasonable to be able to fix it so it doesn't do that.
See the articles Change Spotlight preferences on Mac - Apple Support
Spotlight Suggestions on Mac - Apple Support
The documents box when unchecked in spotlight preferences will not include files as in Mac system preferences desktops and documents box is always turned on Use iCloud Drive to store documents on your Mac and iOS devices - Apple Support
The steps in the article are applied in special case If searching your Mac returns unexpected results - Apple Support
See the articles Change Spotlight preferences on Mac - Apple Support
Spotlight Suggestions on Mac - Apple Support
The documents box when unchecked in spotlight preferences will not include files as in Mac system preferences desktops and documents box is always turned on Use iCloud Drive to store documents on your Mac and iOS devices - Apple Support
The steps in the article are applied in special case If searching your Mac returns unexpected results - Apple Support
Why iCloud files SPECIFICALLY don't appear in Spotlight
