All desktop folders and files disappeared after Monterey 12.5.1 update???

I just updated my iOS this weekend due to all the security issues I saw on the news and now all of my desktop files and folders have disappeared. And when I go to finder, I no longer even see my local drive as an option to select. Where did everything go - to iCloud? If so, this is an extremely shady practice by Apple to get me to upgrade my iCloud storage package. I checked my iCloud settings and don't have the "desktop and documents" option clicked so not sure what to do.

How do I get all of my folders and documents back onto my MacBook Pro? Help!