Another comment. Depending on the backup software you’re using, you might not need to take any special actions for cloud files.
CCC, for example, has a feature for backing up cloud storage volumes. When activated, it will download each non-local cloud file, back it up, and then “evict” the file again.
They recommend making a separate backup task to back up cloud volumes to a separate destination (that is, not as a part of a whole system backup), but this might still satisfy your requirements. Then you can leave your CloudStorage folder in place and use a tool like this to make a backup of those files.
See also CCC: Backing up the content of cloud-storage volumes.