https://www.reddit.com/r/PleX/comments/58uhmo/guide_to_using...
Google Drive and Dropbox have shown in the past that they're fine with you storing copyrighted content, you just can't share copyrighted content through their platform.
This is why Dropbox and Google Drive are still supported while Amazon Cloud Drive was removed.
That said, you can still set this up yourself with a VPS, you just need to use rclone's mount feature with encryption or something like encfs.
Is there some kind of reference you can point at to support this pretty wild claim?
Even if true, this seems the kind of informal policy that could change on a whim.
"Respect copyright laws. Do not share copyrighted content without authorization or provide links to sites where your readers can obtain unauthorized downloads of copyrighted content."
Note the "share", there's no reference to merely storing content.
Dropbox does seem to be "informal" though. They simply say they respond to complaints. I'm not sure how you'd be subjected to a complaint storing data privately though.
Plex the cloud software (aka Plex the software on a VM) keeps them out of your private network but will still superfluously send your data from the VM to Plex the company.