icloud drive folder saying "out of space" when i have LOTS of space

just upgraded to the 2TB icloud drive and am figuring out how to utlilize and organzie my macbook and iphone storage on the icloud drive still. I was clicking through the icloud drive folder on my mac and can see that it has uploaded the documents and folders from my desktop, etc just as I want. However, a few folders, some that are not even that large at all say "out of space". I have not even touched 200GB of my 2TB, so i am unsure as to why this message is popping up. When i organize my finder into "list" view, there is a cloud with an exclamation next to it, which im assuming means that it was not able to be uploaded. Why is this the case? Side question .... i have photos in my icloud drive folder on finder that show an icon with a cloud and a download arrow inside the cloud, this im assuming means the image has been sucessfully saved to the cloud and i can then download it when i need, however there are many folders and documents i have that do not show this symbol (cloud with download arrow in it) and some folders that simply have a cloud without any arrow or icon inside. I just want to know what the meaning of these different icons are and whether the documents/folders that are located within my icloud drive but do not have any symbol beside them are properly backed up as well.

Thanks,

A