I have Sierra and I have started Documents in the cloud.
Now, the system can purge a document, if it wants space and the document didn't change from a while.
In Time machine, I understand that the file should be saved (when it was on the disk), and the latest version is the good one, because it didn't change, and if I change it, it will come back on the disk and then be saved by TM. All the backups should work properly.
But if the document is purged on my disk, do Time Machine show it on the latest backups, because it 'knows' that the document isn't deleted, it's just elsewhere, or does it present the document folder without the purged documents, and one have to go back to the day where it was on the disk to see it in Time Machine?