How to separate iCloud Drive from Desktop & Documents How do I separate iCloud Drive from Desktop and Documents?

I accidentally clicked on an option to have iCloud store all of the desktop files, then all of the sudden, iCloud ran out of storage.

I got rid of iCloud Drive but all my files disappeared off the desktop. Luckily, I was able to restore them through iCloud.

Now I am looking for a way to have iCloud and the Desktop back to default behavior (separate) - without deleting all my files. How do I do that?

Side question:
If I used TimeMachine with iCloud backing up my desktop, all files on the desktop would also be copied to TimeMachine, right?
To answer your first question:

Deactivate storing your Desktop &amp; Document files in iCloud by doing the following:

Click Apple Menu (in the upper left corner of the menu bar) -> System Preferences -> iCloud -> Click Options (next to iCloud Drive) -> Uncheck Desktop &amp; Documents Folders -> Turn Off -> Done.

What may seem counterintuitive is that your files are still stored in the iCloud ( which is perhaps why you thought you lost them). 

To retrieve your files, you should open Finder and navigate to iCloud Drive, and then to the Documents folder within iCloud Drive. You should then manually transfer or copy the files from that directory to the local Documents directory on your computer. You should then do that same with your Desktop folder.

Answer to your second question here: Does Time Machine backup iCloud Drive files that are not stored locally?