The WinZip Unzip and Install feature is a simple, "implied extract" process for software applications distributed in WinZip files. This feature is available when WinZip detects the presence of a file named SETUP.EXE or INSTALL.EXE.
When invoked on a WinZip file containing a recognized setup program, the Unzip and Install feature creates a temporary subfolder in the user's %TMP% folder, extracts all the files in the archive to that temporary location, including any stored path information, then runs the setup program from that temporary location. If the SETUP or INSTALL file is itself inside a folder in the WinZip file, WinZip will display the error message pictured below.
WinZip displays this message, because the Unzip and Install feature can only run a setup program directly from the root of the temporary subfolder it created. It is unusual for software installation WinZip files to contain a setup program with folder information. No version of WinZip will support using Unzip and Install when this is encountered. As instructed in the message, Unzip and Try should be used at this point.
If you have any questions, please email Technical Support
How do I install software downloaded in a Zip file?
WinZip Install Feature
Tools Tab - WinZip Ribbon