Which will entail some other problems, as I recall (several people checked in on the forum after the update). Not a Mac user, so I don’t have first hand experience. I have an iPad, which I no longer use iCloud on to sync Obsidian.
Apparently, there suppose to be no issues with iCloud sync from Mac to iOS/iPadOS, but again, I cannot have tested that (being a Linux, Windows, iPadOS user).
Finally, I wonder what the contents of the Wednesday 26-07-2023.md file are?
I don’t need to know, just try to copy the contents of it in a plain text editor, keep it safe, try deleting the offending file and opening the vault again.