Issue with cloud storage on iphone

Hi, I have 1 TB of data on my iphone and I've used hardly any of it. I have 'save photos to icloud' turned on. When I edit a video in the capcut app on my iphone and then I try to download that video so I may use it, send it to my laptop, etc...it tries to download the video to my phone storage instead. And then I get the messge: you dont have enough storage to download this video.

But I have 1 TB of storage that I pay lots for yet I can't use it.

Is there any solution. I have 1 TB of storage but I cant use it because everything goes directly to my phone storage despite following all the steps and 100% icloud storage is turned on.

Thanks for any insight!

J