I got the same thing when using the "Extract All..." function built into Windows (11) but when unzipping with 7zip it had no issues. I haven't found many articles that are particularly helpful regarding this (they offered generally unhelpful advice such as "make sure Windows is up to date" and "your file is corrupted," which it's observably not since 7zip works and it doesn't). I have encountered other errors with these file types though stating "the path is too long" so it is possibly just that it doesn't support that particular format of encryption and we're receiving a catch-all error message.
Solution: It's not worth the energy, just use 7zip, its free: https://www.7-zip.org/