1) Don't try to land with Dair against her, she can Witch Twist right through it.
2) Try to refrain from attempting to Uair juggle her, if she doesn't just jump and dABK away then she'll probably Witch Time you and make you pay for it
3) Use his Limit Breaks to kill her as soon as you can. A lot of Clouds I fight have a tendency to reach Limit and then stick to it for basically an entire stock without using it for the extra mobility and strength. While this is good for the most part, its countered by the fact that Cloud in Limit gets combo'd to Inferno and back against Bayo. If she gets combo starters on you, it's really hard to get out of them, and if you get caught in her vortex of hitboxes the damage you sustain will outweigh the Limit boosts you've gone out of your way to maintain. Dispatch of her as soon as.
With Cloud, bait and punish is the way to go against her. As long as you stick to punishing her mistakes and overextensions, she can't Witch Time you for going in when it isn't guaranteed. Furthermore, baiting makes them more prone to Witch Timing on reaction and force them to stale it. I think Cloud recovers better high against Bayo than low, since he at least has Nair to make a kind of defensive bubble as he lands. Below and at the ledge Bayo bodies him most of the time.
The one problem with the bait and punish strategy here is that Bayo primarily plays that way (well at least I do lmao) so in the end these fights boil down to who can punish who the most. Play that way and the match goes from being a losing one for Cloud to a 50:50 imo.