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I wonder if it was added back into the code when they released 2203 and the whole private cloud support model they took away and re-added?

You could be correct. Looking at the doco for 2112, no cloud resources are listed:

Oh wow you found it fast lol

Looks like to use it I would need to swap my existing permanent licenses for subscription "Hybrid Rights" licenses.

Correct if you add hybrid rights you can leverage cloud locations with on prem controllers

Yea, they removed the access with the exception of gov accounts, and then added it back a couple releases later for everyone.. when it was removed, it took us about 4 months to find anyone who knew there was an exception for gov accounts.. good times..

You need hybrid rights licensing for cloud to show starting with 2203