I also experience a similar issue (macOs Monterey) when I turn off icloud drive and turn it on again the icloud drive folder keeps loading saying (intalling Icloud Drive) while nothing happens. I cant reach my folders. This doesn't solve after restarting my device.
Also, when I want to turn on the yncing between desktop and documents in icloud preferences it doesnt do anything. A frequently occuring issue but can't seem to solve both.