Spinning Wheel + Infinite iCloud Download + PROJECT DEADLINE

Workflow:

Videos are stored in iCloud Drive,

I download the videos I need for the current project and remove others that I am not working on.

This is because I only have 500GB of physical storage (whereas I have 2TB on iCloud) and that project files can go from 30 to 150GB.

Anyways, yesterday I was working on a project with a Multicam setup of 4k 60fps HDR footage, which was way too large to get a smooth playback.

So, I created proxy files at 720p and removed the original files from my physical drive.

EVERYTHING IS WORKING FINE UNTIL HERE.

My dad calls me and I reply on my Mac because my phone was far away.

(Not a great idea)

After that call, FCP immediately stops responding with a spinning wheel.

I restart FCP, restart my laptop, reset preferences, reinstall FCP... nothing changes.

I download the original 4k files, nothing changes.

WHAT I NOTICED, is that at the same time, it does download some files from my iCloud Drive...

Don't know what files????? Because remember all the files it needs are already downloaded.

But what's even stranger is that this download bar increases DYNAMICALLY.

It starts by saying for example 230MB / 250MB but when it reaching 250MB it suddenly changes to 250MB / 270MB.

I tried to wait and see but when it was over 200GB I decided to stop.

Here is an example of how it changes:

While this all happens, my laptop is burning, fans and rainbow wheel are spinning and FCP not responding.

Please if someone can help me.

The project deadline is TODAY.