Thank you for your bug report. The behaviour seems a bit different, for a .xz 
archive it will create a folder only if there are more than 1 file to extract, 
is that the case of your example?
The issue would be worth reporting upstream on 
https://gitlab.gnome.org/GNOME/file-roller/-/issues

** Changed in: file-roller (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/1835654

Title:
  Extracting a zip archieve creates a new unwanted folder

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