How to resolve Error-8062 and Time Machine issues caused by iCloud feature on Mac?

After 4 different Apple Support session over 5 days with 8 different “Associates” on Chat, screen sharing, and Goole searches for Error -8062 I was able to scrape together a root cause. While also wondering why Time Machine was complaining about incomplete file downloads. 

This feature places the key MacOS folders Documents. Downloads, and Desktop on the iCloud and REMOVES them from the Mac local physical drive. Many folder/file operation on the Mac involve the use of these key folders and their contents. This results in MacOS getting confused with what your are trying to do causing network/iCloud conflicts. Resulting in Error -8062 and Time Machine balking

Do not Enable this iCloud feature it does not work properly! If you have enabled this iCloud feature, to recover you must first download folders Documents. Downloads, and Desktop to a physical LOCAL storage device on the Mac which is totally independent of iCloud and its features & functions. Then disable the feature in iCloud Settings. Then copy these folders back to where thy normally are on the local Mac storage. 

[Re-Titled by Moderator]

Original Title: Error -8062 resolution