Thanks for your reply. Obsidian syncing with iCloud was working prior. I definitely want different config files on macOS and iOS since not all of the macOS plugins, etc. are supported on iOS. This way, changing something on iOS, theme, plugin, etc. isn’t mirrored on macOS.
I’m not disagreeing with you, but as long as I’ve been using it, I have only had one sync issue with iCloud, mentioned above (delay vs not syncing) and Drafts developer had seen something similar with 12.3 update, so he suggested I try disabling/re-enabling iCloud Drive. It fixed the delay. When I then setup Obsidian again, I did a couple manual copies in Finder. For example, archived iCloud Drive Obsidian vaults copied to now active iCloud Drive > Obsidian directory (created in iCloud Drive when setting up sync on mobile), etc.
Not sure if this helps. Thanks again.