Two Documents folders in iCloud Drive - one with .dat files only?

Looking at my iCloud Drive (through iCloud.com online or through the Finder on my Mac) I see two Documents folders.

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• One has a traditional Documents Folder folder icon (simple debossed document icon on the folder icon) when viewed in the Finder. *This folder contains all my documents.*
• This is the folder I'm used to seeing as a MacOS-recognized default document folder, though I don't know why the iCloud.com version uses a blank folder icon.

So far, mostly normal stuff except for the blank folder icon when viewed through iCloud.com.

However:

• The second Documents icon has a folder icon with some kind of illustrative navigation app-looking icon on it and only contains .dat files.
• The .dat files are xml files, apparently plists, named by date with this header:

<?xml version="1.0" encoding="UTF-8"?>

<!DOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "http://www.apple.com/DTDs/PropertyList-1.0.dtd">

And then a ton of these <dict> items:

<plist version="1.0">

<dict>

<key>data</key>

<array>

<dict>

<key>alt</key>

<real>65.225685119628906</real>

<key>currentSpeed</key>

<real>3.0155007839202881</real>

<key>date</key>

<date>2021-10-31T19:12:19Z</date>

<key>horizontalAccuracy</key>

<real>4.6371793746948242</real>

<key>lat</key>

<real>48.537681579589844</real>

<key>long</key>

<real>-122.22262573242188</real>

<key>runs</key>

<string>8</string>

<key>verticalAccuracy</key>

<real>3.5101432800292969</real>

</dict>

Here are the .dat files from the second folder, they appear to be dated state snapshots of some kind:

So, I have concerns and questions, I hope someone can help me out:

1. My main concern is that the Documents folder has special status in MacOS (which I don't fully grok) and I want to be sure nothing in the file structure is corrupted in a way that will affect backups, integrity, etc.
2. Is the folder full of dat plist xml files supposed to be an invisible folder that MacOS uses for tracking states of the primary Documents folder? If so, should I be concerned that it is visible and subject to accidental file operations like saving documents into it, deleting it, etc.?
3. If this two-folder situation isn't normal, how do I fix it?

Thanks!