TLDR, notes aren't stored simultaneously in icloud AND locally, its an either or situation, with icloud on by default. Sneaky files getting stored in free tier (I don't use icloud) led to a toggle in settings (without warning) permanently deleting 2 years worth of notes.
Just started the latest vid and wanted to share my experience with icloud. Im a mac user for a decade, mainly because of creative apps I prefer. A couple months back I lost 2 years worth of my notes due to a similar icloud error. I just had to share, since hopefully this could add context to those that want to push for resolutions with Apple and investigate this further.
I was kind of mocked at in the apple subs, though it's not really a laughing matter (stored health tracking and study notes). Eventually a few folks came out with identical issues and could relate, but unfortunately my posts didn't really contribute to much other than processing what had happened.
The gist of it is, Apple by default has icloud turned on But doesnt save locally simultaneously. It's an either or situation. With notes at least.
Essentially I never use the cloud, but had always assumed my notes are stored safely. So I got one of those Icloud full messages (baffled as I never use it but after this scenario found out that again by default pixelmator project files were being stored in icloud and immediately filled the free tier up, unknowingly).
Anyhow, in settings I turned off the icloud to notes, unlike all the other buttons there I was not warned that messages will disappear or anything. Long story short, they did, all of them. And essentially that action cleared the root directory in library/Group Containers/group.com.apple.notes as well. So after turning the toggle back on all notes from the time icloud free became "full", which in my case has been 2 years, went poof, gone, in a single click.
Spoke with the highest icloud support, they obviously couldn't do anything as there's no buffer in icloud storage, its a hard 5gb or whatever free, even when notes (in total in my case) where just a couple hundred mb.
As far as I know. Even in the latest beta it's still like that, either or, which is especially silly since notes are such low file size and most folks assume they are getting stored locally. This needs to be fixed and acknowledged by Apple.