For anyone working with archives having filenames that include 2bit characters (Chinese, Japanese, Korean) extracting .zip garbles the file names of everything in the archive (this has been an unsolved problem with .zip archives for decades!), so I often recevie archives in a non-.zip format.
It seems there is no way to unarchive .lzh and other non-.zip archives using "onedrive for business - extract archive to folder" -- it basically just ignores the archive.
A way of extracting other archive types would help a huge % of the world's population.
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