I am using Dropbox v169.4.5684 on macOS 12.6.3. In a terminal session with current directory in a Dropbox directory, I copied a file from a sibling directory using the cp command. I edited and saved the file (using vscode). The edited version of the file is visible to vscode and at least two other programs. The edited file has also been uploaded to the Dropbox server. The Dropbox icon shows that syncing is complete.
However, if I print the contents of the file using the cat utility (in /bin/cat - built in to macOS), it shows the version of the file before I edited it. I have tried rebooting the computer and the behaviour persists. I wonder if there is a problem with the Dropbox filesystem. It seems very unlikely that there is a bug in cat.