Where are my photos?

The iCloud Photos Library is not visible on iCloud Drive in the Finder. You will see the iCloud Photos only in the Photos.app, for example, if you open the Photos.app on your iCloud web page at www.icloud.com, or if you launch the Photos.app on your Mac and enable iCloud Photos on the Mac (Use iCloud Photos to store photos in iCloud - Apple Support).

The settings you posted is in system preferences > iCloud > manage , if you click on turn off and delete the photos can be recovered before 30 days .

To see the folder where photos are stored .

Click on finder , take cursor on top menu bar > Go > Home > Users > your user name > pictures .

See the articles https://support.apple.com/en-in/HT207368

https://support.apple.com/en-in/guide/photos/pht56eafa987/4.0/mac/10.14