Because files with generic "System Update" names are frequently used in both legitimate software deployment and as disguises for malware, 1. What is a .7z file?
It uses the LZMA algorithm to shrink large folders into much smaller files, which is why it is popular for distributing "System Updates" or large game patches. System_Update_02.7z
Use the 7-Zip utility to "Open Archive" rather than "Extract." This allows you to see the file names and extensions inside without executing them. Because files with generic "System Update" names are
Always right-click the archive and scan it with a tool like Windows Defender or Trend Micro before attempting to interact with the contents. Use the 7-Zip utility to "Open Archive" rather than "Extract
Knowing if it was in a specific game folder or an email would help narrow down its exact purpose. What is the "package.7z" File? - Bitwarden Community Forums
Some applications download update packages into a temporary "updater" folder before running them. For example, Bitwarden and other apps have been noted to leave installer archives in local AppData folders.
Before "extracting" the contents, you can look inside the archive without running any potential threats: