http://macmost.com/e-1046 Files saved to iCloud Drive interact with Time Machine differently than files saved on other parts of your hard drive. In case of catastrophe, you don’t need Time Machine to save your files, as they would be waiting for you on the iCloud Drive servers. Time Machine doesn’t save older versions of files for most apps, but modern apps will save versions of files that you can revert to. In case you delete a file by accident, Mac users can quickly and easily recover them from the Trash. Some iCloud Drive files can also be recovered using Time Machine.