iCloud for Windows Ignoring User-Assigned Storage Drive, Overloading C:\ Drive

I’m encountering a frustrating issue with iCloud for Windows where it fails to respect the drive I’ve allocated for iCloud storage. Despite assigning a dedicated drive (S:\iCloud\iCloudDrive) for local iCloud files, the application is consuming over 77.5GB of space in C:\Users\[User]\AppData\Local\Packages\AppleInc.iCloud_[...]. Meanwhile, only 12GB of files are stored on the assigned drive (S:\).

This is problematic because:

1. C:\ Drive Capacity: My C:\ drive is a 512GB NVMe SSD, which is nearly filled due to these unmovable files in AppData. (I've tried Junctioning as well, but Junctioning anything in WIndows System files is a baaaad idea.
2. System Performance: This behavior severely degrades PC performance and slows down operations like iPhone updates when iCloud tries to free up space on C: to backup the phone before a new developer beta.
3. User Control: iCloud is ignoring user-defined storage preferences, leaving no way to manage or relocate these files from AppData.

I understand that Apple systems often avoid partitioning drives, but this design makes iCloud for Windows almost unusable. Users with limited C:\ space are left with no practical solution to move these files.

Steps to Reproduce:

1. Install iCloud for Windows and set up an iCloud Drive folder on a dedicated secondary drive (e.g., S:\).
2. Sync files with iCloud and monitor disk usage on both the assigned drive and the default C:\ drive.
3. Observe excessive storage consumption in C:\AppData\Local\Packages\AppleInc.iCloud_[...] regardless of user settings.

Expected Behavior:

iCloud for Windows should respect the assigned drive for all local storage, minimizing (or eliminating) data written to the C:\ drive.

Actual Behavior:

iCloud writes excessive amounts of data to the unmovable AppData folder on C:, ignoring user preferences.

System Details:

• OS: Windows 11
• iCloud Version: 15.3.138
• C:\ Drive: 512GB NVMe SSD
• Secondary Drive: 1TB Lexar SSD

Questions/Requests:

1. Is this behavior intentional or a bug?
2. Are there any workarounds to force iCloud to fully respect the assigned storage drive? (Would something like junctioning work?)
3. Will Apple address this in future updates? This behavior borders on malware-like practices and is far below the standard of quality I’ve come to expect from Apple—except perhaps in the sense of “It just works” (until it doesn’t).