Workaround is to use PowerShell to unzip the file, not GUI. It worked for me:
$src = "C:\Users\karm\Documents\3.1.0-CR7\hibernate-dist-3.1.0-CR7.zip"
$dst = "C:\Users\karm\Documents\3.1.0-CR7\"
Add-Type -assembly "system.io.compression.filesystem"
[io.compression.zipfile]::ExtractToDirectory($src, $dst)