Google Drive Desktop and Mac

I installed Google Drive Desktop on my Mac (OS Ventura). I chose to sync a folder in my Documents, and selected "stream" rather than "mirror" to avoid duplicating files. Two questions please:

1) In Finder, I see the Google Drive associated with my Gmail. Many of files have cloud icon. I understand that it means the file is available to download when I need it. When I open or change one of those files, the cloud icon disappears. Does that mean that the file is now on my local hard drive on Mac?

2) When I create a new file and upload it to GDrive, the file appears in the GDrive folder that's in the Mac Finder, but does not appear in the synced folder in My Documents.

Any help? Thanks.