Earlier quoted context omitted.
As mentioned in another comment, zip support actually goes further back as far as '98, but only Windows 11 added support for handling other formats like RAR/7-Zip/.tar/.tar.gz/.tar.bz2/etc. That allows it to be a default that 'just works' for most people without installing anything extra. The vast majority of users don't care about the extra performance or functionality of a tool like 7-zip. They just need a way to o…
Windows zip is not in fact good enough. I've run into weird, buggy behavior, hanging on extract, all sorts of nonsense. I can see the argument that a universally-adopted solution is better, but that's different from windows just not working.
That is enough to bite into 7-Zip's share of users.