Optimize Mac Storage: Keep local copy AND iCloud backup of directory My active projects in a directory under ~/Documents/, which puts it in the path of iCloud's Optimized Storage. Often, I'll open a project folder to find files replaced with .icloud placeholder files. 

Current workaround is either waiting for iCloud to re-download my project or resetting workspace changes via git.

Is there a way to force a persistent local copy, while still keeping a backup in iCloud?

I'm not trying to omit directories from Optimized Storage, I want the best of both worlds.
No, that is not possible.

You cannot always have a local copy with a backup in iCloud as well as having the same files be eligible for Optimized Storage.

Either the files are permanently stored locally, or they're eligible for Optimized Storage - i.e. only stored in the cloud.