@andrija_sm - The architecture of the AEM cloud is different than AEM 6.5 and below. When you upload Assets to AEM cloud, they are not uploaded to AEM but to the backend data store and AEM just gets the signed URL to read/update the binary from Datastore. So, it's not comparable with traditional AEM instances where assets were directly uploaded to AEM
AEM Cloud can be configured to use direct binary upload, which means that asset binaries are no longer uploaded straight to AEM. I have used file upload before and its works without an issue.