How much space is required for Kingdom Hearts Cloud Version?
Even though Kingdom Hearts Cloud needs online access or network, how much space is needed to play on the Switch?
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Instead of running natively on Switch hardware, the game leverages the player’s internet connection and streams directly to the device. Theoretically, this allows players to jump into a game with no download times and without hardware constraints.
For the storage part:
These games are available only in the Nintendo eShop and still require a download of the respective game app to your Switch. This will act as a launcher for the game and takes significantly less storage -- approximately 100MB
Source, https://www.cnet.com/tech/gaming/switch-cloud-streaming-how-to-play-dying-light-2-control-and-more/ .