iCloud disappears as a sync item after 5.1 update
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When Apple introduced OS X 10.10 (Yosemite), they made it impossible for applications that they don't sell themselves to use iCloud for syncing any longer. So from then on, the only way for users of the current version of 1Password to use iCloud is for them to buy it from the App Store. The version sold on the AgileBits site can no longer offer iCloud as an option.
Your description suggests that your license came through AgileBits, not Apple, but if that's not right, post back and someone will try to help.
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Hi @rhwinkler,
Can you tell me if you just updated to Yosemite, which you then updated 1Password to the 5th version?
Check your Applications folder, is there more than one version of 1Password in there?
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