It can be worse. I have a lot of iCloud space for my needs. Need more space than money at my age.
My problem was similar to yours.
As I was pressed for time, I put my desktop items in a folder to clean things up a little. 1 HD and 1 Working Folder that contained what I considered files in current use. Thus a clean desktop. But I wound up with a lot of alias (es) on my iCloud. What is the plural of Alias ? I had a lot of circular references on the iCloud. So, I had Backup of Backups of Backups, or the Aliases took over . The iCoud is not magic, it works , but it takes a little while and when the internet is hozed (hosed), nothing works. Especially cloud centric software. I could not Delete or Hardly clean up much of anything because I did not do my job of keeping the desktop clean, the iCloud file system organized and I might as well died with it all.
It is pretty much straight now. My problem came when I put my Wifes old windows box in the file cabinet for a year or so. She got my old Mac Book Air something or other, I upgraded and in my haste, made backups of backups on the cloud and the internet was not reliable for a long time. Things locked up and I did not know what was causing the problem. It was the Internet of Things and Myself.