Gray circle with downward facing arrow

"Gray circle with downward facing arrow: What is the small, downward facing arrow in the gray circle that’s on the right side of the file name on many of the files and folders in my Files app mean"

-------

Grey Circle with a Downward Facing Arrow:

That indicates that the item is downloaded (local stored) to your Mac.

Screenshot:

ORIGIN74 wrote: Shouldn't I also see that file in my Documents folder on my Mac then?

As I said in the linked article:

Album is kept always local as well as at iCloud

"Local" here means local to the device. If you are keeping the file loaded locally on your iPhone, then that doesn't mean you have to keep it downloaded and local on your Mac. It's your choice on each device.

So, no.

See this for a set of iCloud icons:

Understanding iCloud Drive - Apple Community

Shouldn't I also see that file in my Documents folder on my Mac then?