"Open with default app" not working on Mac if file is on iCloud

The default app for .md files on my Mac is BBEdit. However, when the file is in a vault on iCloud, “Open with default app” doesn’t work. It doesn’t do anything. The reason is that the default app is set to Obsidian, as shown in the Info dialog for the file. It is impossible to modify it. Anywhere else on my Mac, such files have BBEdit as the default app. If I move the file from iCloud to another folder on my Mac, the Info dialog now shows BBEdit as the default app.

Is this an iCloud issue? Is there a way around it?

Exactly the same problem here… I am using MacOS Mojave 10.14.6.

I am experiencing the same problem with open in default app command for Excel files starting from when I moved the root folder to iCloud.
I opened a bug asking for information and help but, so far, nobody suggested a solution.
Did you find a way to make the command works?

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