Documents folder structure under iCloud behaving strangely after last Ventura update

[Ubele]

I have Apple's 2 TB iCloud plan, which I share with my wife on the family plan. I keep my Documents folder on iCloud. A couple months ago, I replaced my 27" iMac with a 16" M1 MacBook Pro. I followed the usual "getting your Mac ready to sell" steps on my iMac (signing out of my accounts, reformatting the hard drive, reinstalling Ventura, etc.) and gave it to my wife, setting it up under her Apple account. Rather than migrating my MBP files from my iMac's Time Machine Backup, I only migrated my account settings. I reinstalled all my software and copied my Documents folder and file structure from a Carbon Copy Cloner backup drive of my iMac system drive. Last week, I updated my MBP from Ventura 13.3 to 13.4. A couple days ago, I noticed something strange:

1. The main folder structure within Documents doesn't reflect any changes I've made to my folders and files since the Venture 13.4 update.
2. The Documents folder now contains two additional subfolders: Documents - Ubele's iMac and Documents - Ubele's Laptop.
3. Documents - Ubele's iMac has my iMac's folder and file structure as of September 22, 2022, rather than the date in April 2023 when I last used the iMac.
4. Documents - Ubele's Laptop has my up-to-date MBP folder and file structure, including the changes I've made since the 13.4 update.
5. I checked my iCloud storage used, and it appears to add up to approximately the combined file sizes on my MBP and my wife's iMac. In other words, it doesn't equal my wife's iMac files + my MBP files + all the files I had on my iMac as of 9/22.
6. However, files I deleted from my iMac after 9/22 are still there and available for download. They mostly were PDFs and Word documents, so their combined size wouldn't be large. That implies that there's only one instance each of all the files that are in both Documents - Ubele's iMac and Documents - Ubele's Laptop.

What I want is to have my root Documents folder and file structure be up to date and not have Documents - Ubele's iMac and Documents - Ubele's Laptop subfolders. However, I'm afraid to delete Documents - Ubele's iMac lest it delete the files that are also in Documents - Ubele's Laptop. Any ideas as to what I should do? My best guess is to move my Documents folder out of my MBP's iCloud folder so that it's only local, unsync my MBP from iCloud, delete the Documents - Ubele's iMac and Documents - Ubele's Laptop subfolders from my MBP, log onto iCloud via Safari, delete everything from the Documents folder there, resync my MBP with iCloud, and move my Documents folder on my MBP back under iCloud so that it uploads to iCloud again. Any caveats or other suggestions?