2023-03-13 | MacBook Pro | MacOS Monterey 12.6.3
Problem: Desktop folder and files disappeared (after logging out and then back in to my Apple-ID account).
Solution: Settings -> Apple-ID -> iCloud -> iCloud Drive (check-marked) -> Alternative -> added a check-mark to "Folders Desktop and Documents".
All my desktop folders and files reappeared!
Cheers, Peter