This is because, on Windows, you can't double click a 7z file and have it open 7zip. If they fixed that, they'd have a winner.
I'll take a look at my setup when I get home tonight.
I usually click "Select all" then unselect ISO. Done.
Edit: other person replied it must be opened in Administrator mode. That explains why I didn't have it associated.
If you choose the wrong one it will not work later.
And it will not repeat the dialog box with the options.