Not incorrect but not fruitful.
Many users have been suffering and were voicing opinions like this seasoned campaigner.
If you are reluctant try my Siri Shortcut suggestion for now, try navigating to your vault in iCloud in the Files app and copy the full vault to a non-iCloud location. When the operation finishes, you can delete the just-copied content as you don’t need these actual copies, this is done as a way to resurrect the zombie files from their undead state (in order to be able to copy something somewhere one needs the local copies to be available).
Then try launching your iCloud vault in Obsidian to see if this was beneficial.