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Most people won't use that GUI, but will right click file or folder -> 7-Zip -> Add To ... and it will spit out a file without questions.

Granted Windows 11 has started doing the same for its zip and 7zip compressors.

Same trick goes for opening archives or executables (Installers) as archives.

Let's chat about Windows 11 right-click menu. I'm pretty sure they hid all the application menu extensions to avoid worst-case performance issues.

Exactly it. 3rd parties injecting their extensions harmed performance, which people turn around and blame Microsoft for.

People are really praising microsoft for for all three new "features" and tracking in win 11.