Can't enable iCloud Desktop & Documents Folders

I have an Apple M1 Mac mini (model Z12N00038CZ/A) with Ventura 13.5 (22G74) installed. It is my personal (private) computer, i.e. not issued to me by a company. A few days ago, the iCloud Desktop & Documents Folders option turned itself off and messed up the iCloud folders in the Finder. Then, multiple Documents folder shortcuts have appeared in the Finder sidebar as can be seen in the first screenshot below. When I try to enable iCloud Desktop & Documents Folders now, the slider always returns to the off position as shown in the second screenshot below. I have tried logging out and in normally as well as restarting and logging in under the safe mode.