I think that at least since win10 there is zip embedded in windows, it’s just not 7z
the issue is that it sucks, it's at least 10x slower than 7 zip, maybe more, showing lots of files/folders freezes the explorer gui on w10 and it only supports .zip (which could've been changed on w11, never used, never tried)
In 11 (and maybe later 10 updates) they added 7z and rar support.
When you open a .tar.gz or a .rar that button is gone.
For those you need to do right mouse on the .tar.gz or .rar and click "Extract All...".
I miss the days when Windows' UI was consistent.
It's just more noticeable on 11/10 because the last four releases each have a very distinct visual style.