However, the option to 'Manage backup' isn't available in Dropbox preferences.
I know we're supposed to be able to turn it off using the steps in this article: This seems to be the way the Computer Backup feature is supposed to work. These link to corresponding folders inside the Dropbox folder (inside the My Mac folder). On a new M1 iMac running macOS Big Sur 11.5.2, the home folder has what look like aliases (symlinks?) in place of the Desktop and Downloads folders.