deletions will not propagate either way between cloud / device. If you want to reduce space use on cloud to get under your quota you need to delete on cloud and empty the trashbin.
Resetting the eDrive apps Cache and Storage is akin to a “memory reset” if you want to reupload files once more. By default once uploaded, eDrive will not try again.
I currently recommend RoundSync as (murena) webdav syncer when the in-built sync is cause for user frustration (if you give this a try, disable eDrive file sync).