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All the games i have cloud disabled including Grim Dawn remain disabled.
Note: I am on the beta.
Others are but i have no idea why since i have been on the beta all this time from when the client released on 19 Oct 2019, had all the builds and not once encountered this issue.
The only suggestion i can think of is antivirus interfering. Note: I use Malwarebytes and Windows Defender and have no issues with games.
Advice we always give is for people to exclude their games from being checked by any anti-virus programmes since they often seem to trigger a false positive with them.
It is the advice given but a lot of people do not know it is necessary.
The TDLR:
Restart the steam client or start it if it isn't open already. Your steam cloud in the main steam settings should be enabled due to the "bug". BUT DON'T DISABLE IT YET! In the same settings menu for cloud, you should see the second option called "Open the screenshot uploader.....". By default, the second option is off. Enable it, click ok to save the change. Then open the steam cloud settings again and disable the "enable cloud" setting this time around. Disable the second setting as well. Click ok to save it - don't click "cancel" otherwise it doesn't save. You don't need to go digging into the library to disable cloud for every game. Exit the steam client and start it again, cloud should be disabled. I have restarted the steam client 4 times in a row and cloud was disabled every time.
In theory, you could do the same for individual games as well. IE. Enable the second setting in the main steam cloud settings -> disable cloud for individual games -> go back to main cloud settings to disable second setting. I have not tested it though.
Theory as to why it is happening:
For some reason, the steam client is not saving the change whenever you disable steam cloud be it in the main setting or for individual games. This can be observed by looking at the sharedconfig.vdf file under the steam userdata folder. It is always the same timestamp no matter how many times you try to enable and disable the cloud setting. This is further supported by the fact that the sharedconfig.vdf isn't uploaded to the steam cloud as well whenever you make such a change. The user config file is something that steam will forcefully upload to cloud whenever you make a change. Since there is no change recorded in the file, it doesn't get uploaded. Which is why even if you delete that file, it will still download the old config file that has cloud enabled.
The steps I mentioned above will record the change in the cloud setting. The idea behind it is to make use of a setting that the steam client is able to record the change for so that the change in the cloud setting is recorded along with the former as well. I have not tried with all of the steam settings. I have tried toggling the "remote play" option in the main steam settings but it didn't work, cloud was still enabled every time. Other settings might work as well but I don't have the patience to test each and every one of them :P
Nevertheless, this is still a bug as it shouldn't be something that users have to jump through hoops for.
Hope it helps!