Empty folders in macOS but not in iOS

Lots of my folders are empty on macOS but all work perfectly in iOS.
Everything is up to date.
I use FUSE drive format and was having the same issue with WebDAV (Applescript), didn’t work with WebDAV (HTTP) – the page never loaded.
The vault and the folders are on iCloud.

Out of solutions, nothing out there specifically about this issue.

Is it possible that your vault in iCloud Drive is not fully available/downloaded on your Mac? Unfortunately, you have to download the complete vault because these “placeholder” files don’t really work as “usual” files in the filesystem. We have an issue on GitHub that describes this problem: Show warning if Cryptomator encounters placeholder files in iCloud Drive · Issue #1309 · cryptomator/cryptomator · GitHub

Is there a way to know/verify/fix this in order to make sure the vault is entirely on my Mac?

Thanks!

Screenshot 2023-06-22 at 4.13.54 PM
There is no download icon next to the vault file. Some folders do have it so I did click them, but it kind of defeats the purpose of using iCloud if my folders are downloaded locally on my Mac no?

So the local copy of I’m not sure what files took a lot of space on my hard drive. Is it the only way? Does that mean that when using the vault in macOS, the option of having the files on iCloud is not viable?
Where are they stored locally? I will have to delete some of them.

Thanks