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I think the main thing is for you to try doing a test restore of your data before you need to (and you already have a local backup anyway if your test goes wrong)
That will give you a better understanding of the whole process - they might be 100% reliable in storing data which is totally unusable by you because you’ve lost your decryption key, weren’t backing it up correctly, etc (for example).
No, you can jusy restore to a second location…it depends on whether everything was backed up, or just a few test files.
I prefer backing up specific folders rather than “everything”, so it’s easier to test. (I’d just reinstall the OS if that was nuked)
Let’s say I want to do a test restore of all my photos. I just rename that folder to simulate that it’s been accidentally deleted… then I just do a normal restore - and do a bit-by-bit comparison of the two folders and check it all went well.