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Comment: Fix no-config access to private Cloud repos.

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Yes, a private repository can be included . OAuth credentials are necessary for configuration. See Configuration 2.1/2.2from Bitbucket Cloud. Just paste link of file from Bitbucket Cloud private repo, and the app will show a link to grant access to the repository.

To view a private repository in Confluence Cloud, does the user also have to be a Bitbucket Cloud user?

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It depends on where the file is, on Bitbucket Cloud or Bitbucket Data Center:

Bitbucket EditionAuthentication
Bitbucket Cloud

Each Confluence user needs to authenticate against Bitbucket Cloud.
So every Confluence user also needs a Bitbucket valid login.
The user needs permissions on Bitbucket to see the file.

Bitbucket Data CenterA personal access token is used for all Confluence Users.
A  Confluence user does not need any Bitbucket login.
Every Confluence user can view included Bitbucket files.