Hey, derekvan, thanks for the idea! Selecting and revealing the Obsidian folder in Finder does not solves the issue for me, but there is another set of iCloud-related options when you click iCloud Drive → Manage:
After clicking ‘Manage’ there is a list of apps, that are using iCloud. Obsidian was already checked, but unchecking it and checking it back solves the issue!
Thanks again! I’m pretty sure this should be added to the docs, as it is not very intuitive…