Created attachment 4331 
video

Executing "Extract-To" with file-roller as the archiver gives an error window about "Operation not supported" (see attached video). We can close the error window and proceed with the operation.
This is probably because file-roller already opens the file-chooser dialogue in the current directory.
This bug has been present for quite a while.

If we change in /usr/libexec/gnome-file-roller.tap:

extract-to)
	exec file-roller "--default-dir=$folder" --extract "$@"

for

extract-to)
	exec file-roller --extract "$@"

then it works properly.