What happen when you clear local saved games

removes the local copy of those saves. You can get it from the cloud the next time you play.

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You won't lose your saves as everything is saved to the Cloud as well, but just thought I would add that this can be beneficial if you are experiencing a game bug or glitch. Or also if you are trying something in a game, but not sure if you want to keep
this part to continue forward with your game progress. You can sync a save to the Cloud, go offline, play the game to try a certain part that you might be unsure of (like trying a certain dialogue choice with an NPC), then if you don't like it, you can delete
your local save, go back online, sync your Cloud save, and boom you're back before your choice like it never happened.

It just deletes from the console and if the game was automatically saved on the cloud, you can download it back from the cloud or it just syncs itself from the cloud.

The Xbox One has a specially reserved storage space to keep a local copy of the cloud savegames stored online.

That storage space is only used to keep a local copy of your savegames to speed up loading, or to store savegames temporarily when your console was not connected online.

If you clear that save game storage, this storage is cleared.

If the console was connected online, your savegames are already synced to the cloud, and will be re-downloaded the next time you start a game.

If there are unsynchronized savegames on your console, because the console was offline, your savegame for that offline play will be lost.