I'm with jfolger. This update process could've been explained better, or had better hand-holding, or better warnings about how different the new 1P configuration is from the old, etc.
I'm very frustrated with getting 1P7 running correctly, which is how I found myself here reading this thread when I should be looking for solutions. I accept the idea of having one vault not on Dropbox, although it makes me nervous that I don't know where my one vault resides or how secure it is. But again, I can get over it since I've been using 1P forever, and Agilebits assures it's safe. Now I need to merge the two vaults and then deal with the duplicates.
I'm sorry that the transition wasn't smoother for you. I'd be happy to help explain, and to help you get on the best path forward. Could you please let me know what vaults you have? If set up correctly I would expect that no vaults are stored on Dropbox (or iCloud) any longer. With 1Password membership, the membership itself becomes the sync service. You can read about our security model here:
If you have a vault called "Primary" that would be a legacy standalone vault, and should be removed. If you log in at https://my.1password.com/ do you see all of your data there? You can delete the Primary vault once that is the case. Any data not already visible there should be moved from the Primary vault to the "Personal" vault.
Please let me know how it turns out.