When using Core Data with CloudKit, does the iCloud container (ubiquity container) containing the copy of sqlite db still exist at local device?
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I think you might be confusing CloudKit with iCloud. You can enable iCloud sync in your CoreData stack to let multiple devices sync for individual users.
CloudKit is not the same, it is more of a tool for data exchange between users and also a shortcut for remote notifications using subscriptions.
The iCloud sync takes advantage of the user's iCloud storage and any fees for increased storage belong to the user.
CloudKit storage belongs to the app developer and if you exceed the (very large) limits there are fees involved that will impact you. https://developer.apple.com/icloud/documentation/cloudkit-storage/