What happened to my Documents folder on macOS?

Episode 1361 (1:48:04)

Doug from Hollywood, CA
macOS Sierra

Doug recently updated to macOS 10.12.3 and now he's getting a lot of beach balling. Leo says that Apple made a change to macOS that turns the Documents folder into an iCloud folder, and Apple never warned anyone about it. Fortunately, he can turn it off in the System Preferences. That's probably where the problem lies. What Apple has discovered is that they make almost as much from services like iCloud as they do from selling iPhones. So they're more likely driving him towards putting all of his data in the cloud so he'll have to buy more space.