Ah, OK! That’s an understandable misunderstanding. This “3D Warehouse” panel is not about browsing the 3D warehouse, but about adding a component from the 3D warehouse into the current model. Maybe it shouldn’t be in the “settings” dialog box in the first place; maybe we should split that in two: the settings and ones that are the “trays” in Sketchup…
The message that cloud models cannot be edited is about cloud models in the VR Sketch sense: it’s about the current model, in which you are trying to insert a component from the 3D warehouse. It’s the generic message you get when you try to do any operation that would change the currently loaded model. The operation you’re trying to do is the same as if you go in Sketchup to the tray “Components” and use the search box “3D Warehouse”.
Maybe it’s in theory possible to display a bigger 3D file from the warehouse, in the same format that it is sent to the browser, just for the preview… but so far VR Sketch is not at all a viewer capable of loading common 3D file formats. Maybe we’ll rethink this strategy as part of our long-term plan to make VR Sketch an editor for non-Sketchup 3D files.
For now I think we should make it clearer why this doesn’t work in your case.