Same thing here:

Karmic 32-bit
2.28.1-0ubuntu1

If I attempt to hit extract right away to extract to the default
location (my home directory) nothing happens. Going to the parent
directory and then back, however, fixes the problem.

-- 
extracting doesn't work right when the location entry is displayed
https://bugs.launchpad.net/bugs/80755
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Desktop Bugs, which is a bug assignee.

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