Unwanted iCloud storage Problem

In transferring settings and files to a new MacBook Pro (M3) from an older MacBook Pro iCloud was set to, as best I can tell, set to backup all my files. For example my entire Documents folder is now in iCloud. iCloud Drive was turned on. This is something I have never used. Typically I set iCloud to share Contacts, KeyChain, etc. I have external backup disks on the MacBook Pro and my other Macs and don't need or want the iCloud storage.

I cannot figure out how to turn off the unwanted iCloud storage without losing information that is now stored in iCloud but was previously stored locally. Even my TextEdit files default to iCloud storage and I have to change the saved location for each new text file. How can I, safely, go back to my previous storage use?

Sonoma 14.4.1, MacBook Pro

Thanks.