Yep. One of the reasons I won't buy the game. Switch has been pretty disappointing for me. Many of the games are a ton of fun but I'm super unhappy with not having a way to make sure my saved data persists past some sort of hardware issue with the console.
Every other game we own works great with the NSO cloud save feature, just Pokemon Sword doesn’t. Its a shame Nintendo is so bad at online services. Most everything else about the Switch is great for our family :)