See the following from Add your Desktop and Documents files to iCloud Drive - Apple Support
(note that the first 2 sections apply to the Desktop & Documents option of iCloud Drive and the 3rd section is about completely turning off iCloud Drive)
Turn off Desktop and Documents
- From your Mac, choose Apple menu > System Settings.
- Click Apple Account. In macOS Sonoma or earlier, click Apple ID.
- Click iCloud.
- Under Saved to iCloud, click Drive. In macOS Sonoma or earlier, under Apps Using iCloud, click iCloud Drive.
- Turn off Desktop & Documents Folders.
- Click Done.
What happens when you turn off Desktop and Documents
When you turn off Desktop & Documents Folders, your files stay in iCloud Drive and a new Desktop and Documents folder is created on your Mac in the home folder. You can move files from iCloud Drive to your Mac as you need them, or select all of your files and drag them to the place you want to keep them.
What happens when you turn off iCloud Drive or sign out of iCloud
If you turn off iCloud Drive or sign out of iCloud, a new Desktop and Documents folder is created in your home folder. You also have the option to keep a local copy of your files that are in iCloud Drive. If you keep a local copy of your files in iCloud Drive, they're copied to a folder called iCloud Drive (Archive) in your home folder. You can move any files that were in your iCloud Desktop and Documents to your new local Desktop and Documents.