Are there multiple meanings of the "empty" solid line cloud symbol for iCloud Drive in Finder?

iCloud drive in Finder shows me some files with an "empty" cloud symbol next to them. Apple Help says:

"Downloaded: The Downloaded status icon  indicates that the folder or file is up to date between your Mac and iCloud and you can view or edit it immediately, with or without an internet connection."

That would be wonderful if it was in fact true. The files I am looking at are not only not downloaded, they have been permanently deleted from the trash.

The only thing I can think of that could explain the empty cloud symbol is if the file were still cached in memory somewhere causing iCloud to represent at as downloaded even though the real status of the file is that it is -not- downloaded.

Further, I assume if, for a file in cloud with this symbol, if I do find an associated file on the local disk and delete it, then the symbol will change to a cloud with a download arrow in it.

Please note that I am using the latest mac OS on an M1 machine and I have turned off Icloud syncing with my local disk.