Folder in iCloud has dotted cloud icon next to it
I don't normally use iCloud but I tried to start. The iCloud drive is there in my Finder. I created a folder in it from within the Finder and put some files in it which I then deleted. I am talking about from on my Mac in the Finder, not on iCloud.com. Ever since I deleted those files, the folder has a dotted cloud icon next to it to the right. I am not sure why this is. Does anyone know how why and how I can fix it?
MacBook Air 13″, macOS 11.7