I don't have an answer to the specific problem you had, but I wanted to say that, yes, I've been using multiple Apple devices for years without ever signing into iCloud. I've avoided lots of mysterious problems that iCloud brings to other people. Admittedly at a loss of some convenience: I have to do backups using other methods.
Sadly, I was forced to start using iCloud on one iPhone when I bought an AirTag. It is apparently impossible to use an AirTag without iCloud. (Clearly network connections are necessary for AirTag to work, but I would have preferred something simpler and cleaner than all the baggage that comes with iCloud.) Also, I found it presumptuous of Apple to immediately start syncing your photos and documents to iCloud the instant you sign in for the first time. It should at least ask you.
I'm not liking this trend of many things being linked to and/or dependent on iCloud. I much prefer a standalone device.