No problems here and I'm running without cloud saves. If you have scheduled backups, your game data should be included in them, If I was IG, I'd remove the strong admonition to use the Steam cloud that now appears on the startup screen until Steam gets its act together.

Instead of just creating a single .old file that gets wiped out pretty quick, Valheim should accumulate numbered backups until you decide to delete them. Feature creep: backup to a specified path. Automatically delete backups older than <timestamp>.

And let's have event-driven saves instead of the time based save. I got into a rhythm, today, time save and garbage-collection hitting one after the other.