I have two desktops appear in iCloud drive

Somehow, two "Desktop" have got created in iCloud Drive. I have named the new one, Desktop1. However, on my Mac, I can see the folders and files relating to the old/earlier Desktop which are not updated.

If I have to work on the files in Desktop1, I have to specifically open that folder using my Finder.

I am not sure what I should be doing: (1) Either merge the two Desktop/s. If yes, how, or (2) Delete the old one but I fear that the folders and files relating to the new one won't appear on the Mac.

I also thought of switching off the Desktop & Documents folder in iCloud Drive. But that is not going to resolve the issue.

The issue is how I see the files which are in Desktop1 on my Mac.