files wont sync but libraries will?

Hi,
I am having some major issues with creative cloud. I just dont understand whats going on.

Finally started using it and saving things to libraries. Logos, colour swatches, pics etc.
Problem is that i made the mistake of saving files to the creative cloud folder.

why wont these files show up in photoshop when i open up the My Libraries toolbar?

Vice Versa, if i open up my creative cloud folder on desktop it wont show any of the libraries where i accidentally saved some photos as well... Is it really supposed to be this difficult to use the folders? i understand there needs to be a distinction between files and then libraries, but why on earth cant i see both in my desktop folder after syncing??