What is the difference between list of apps that store documents and data in iCloud" in iCloud Drive window, and list of things in iCloud in System Preferences->Apple ID?

In macOS Monterey, when I go to System Preferences and go to Apple ID, the System Preferences window goes to show the Apple ID window. When I select iCloud, I see to the right a pane showing a list of items such as Photos, Keychain, and iCloud Mail, and most significantly iCloud drive. On macOS Catalina, above the pane it says, "Apps on this Mac using iCloud", but not on macOS Monterey. They have check boxes nest to them. Next to iCloud Drive, there is an Options button.

When I click on the Options button next to iCloud Drive, a pop up window appears and in the Documents tab a list of items also with check boxes next to them. It says above the list of items -- "Apps that store documents and data in iCloud will appear here". Some of the items say the same thing as the items in the pane on the right in the Apple ID window.

The first list shows above it, "Apps on this Mac using iCloud", and the second list shows above it, "Apps that store documents and data in iCloud will appear here".

What is the difference between these two lists? This is confusing.