Turns out, everything i put inside any folder in my mac, is being uploaded to the cloud, showing me the cloud icon, and files are not available when i need them.(which by itself is a strange UX)
To stop this, i went into iCloud Drive ->options->, and uncheck the Documents and Desktop Folders.
Then i get a mesage saying that all my files in Desktop/Documents folder will disappear from my mac, and will be available in iCloud if i uncheck this box.
I want back my files on my mac. I don't want to go and look for them in iCloud now, but keep my folders structure as it is, with my files not in icloud, but right where i put them in first place. (download all of them)
How to cancel this hostage UX, and get my files where they belong, without removing them from my mac first(as the massage says) ?