This doesn’t sound like an issue for those who use Fusion frequently, however you may want to find ways to get local files, just to be safe.
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Is STEP a CAD format or 3d file format? I thought the latter. Like I don't get constraints or sketches, only 3d models
It’s a CAD format in that the files contain object descriptions instead of meshes (like OBJ). But the format does not support all of fusion 360’s features so it is a lossy export in that respect.
STEP is at least marginally better than STL, because it can represent stuff like circles, instead of just a mesh.