OneDrive Green/White Status Indicators - Request Clarification

Apologies! I know this has been previously posted. But I'm still not clear. Is my understanding below, correct?

The green background, white check shows the file is synced and always remains on my hard drive.
The white background, green check shows the file is synced and is on my hard drive as well, unless I run out of space, in which case the handling will be changed to cloud only.
Is this correct?

Thanks!