iCloud Drive documents are not accessible on iMac with macOS Ventura 13.7.5

iMac 18,3 on 13.7.5

After a recent update to 13.7.5 I noticed that my iCloud Drive Documents are no longer accessible.

I get this error message:

Also, the sync button for Desktop & Documents cannot be toggled any longer

......and, a few times, I also get this error message after logging out & logging back in to my Apple ID......

iCloud drive works fine via web as well as on other devices, no issues.

I've repeatedly stopped sync, logged out of my Apple ID, rebooted system, cleared iCloud caches, logged in again, same result. I also re-installed 13.7.5 but no change. I have no A/V or VPN installed. I have also noticed that after logging in to my Account after booting up, the Account load time is over a minute, including "beach ball" for about 20 seconds.

When starting in Safe Mode and logging in under the same account & Apple ID, the same error happens again.

When I create a NEW Admin account using the same Apple ID, the issue disappeared.

Does that mean I will have to remove the "old" defective account and re-install all apps & programs on my Mac using the NEW Admin account......? I hope somebody can tell me it ain't so.......

[Re-Titled by Moderator]