Where Is iCloud Data Stored On a Time Machine Backup?

Hey Gary,
I know that time machine captures files saved in iCloud if storage optimization is turned off. I have created a time machine back up of my m1 MacBook Air but am unable to locate the iCloud files on my time machine backup. Where are these located within the external drive?
Thank you Gary!
I want to be sure that I have a physical copy of my files to follow the 3-2-1 rule of backups. Thank you Gary!
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Nathaniel