I'm not familiar with the Itch launcher, but I'm going to guess that the problem is my code that unpacks the game files into the launching folder. Its probably not fixable without scrapping that feature entirely.
Seems like a lot of effort just to avoid having a zip file. In fact, it has a habit of exploding into files like a tarbomb, which is going to be a nice surprise for anyone who launches it directly from their downloads or desktop directory.
It does seem to be a "feature" that didn't work out as well in practice as I thought it would. I'll add that to my list of things to change in the post-7drl version.