Thanks for reaching out, and I’m sorry you are having trouble with this deploy step.
As a first step in troubleshooting, would you be able to send the task log [1] for this particular deployment? You can use the following link to securely upload the task log for review:
Let me know via this post once you have uploaded the file, as unfortunately I won’t receive an upload notification.
Upon review, it looks like Octopus is performing the extraction properly, but it appears the unzipped package contains a compressed folder itself - you can see this via the following log entries where 1 file is unpacked (which matches up with the 1 compressed folder in your second screenshot):
With that being the case I would recommend reviewing your package setup to ensure that the zip folder is only one level deep so that Octopus properly extracts the contents as expected.
I hope this helps, but let me know if I can be of any more assistance.