The user may or may not have a complete picture of how iCloud works
iCloud is Only a Conduit to have files on Both the Internal Drive and also on iCloud.
When an Application is used and assigned to Sync with iCloud, changes made on the Local Copy will be automatic be reflected with those changes.
This will allow the user to see and access that same Changed Document from any other device that is signed into and using the Same Apple Apple ID.
iCloud is not designed and intended to be a Storage Space to Archive and Off Loan fees in order to make space on the Internal Drive.
That specific usage & practice is best used by an External Drive and / or some Other Cloud Based Storage Service.
Q - " Wasn’t aware my hard drive docs would be compromised "
A - In what exact way is the hard drive believed to be compromised - Details please.
A - Specific to Big Sur macOS 11 and above. The Operating System resides in a Sealed and Read Only Volume that can not be opened by the User.
A - The only compromise would only be from within the User Admin Account of this computer and not the entire Operating System