If the archive password and installation in 1 click, then there is no field for entering a password from the archive or canceling the installation. It tries to unzip and creates dummy files. Yes, of course there are many ways to solve such a problem.
This will need to be changed but, just so we're clear, we'll likely just reject the file if it is password protected so the ultimate aim needs to be not password protecting your zip files, or extracting them and uploading the files manually.
@Chris D, yes it is clear. It's just, it became interesting how XenForo will lead in such a situation. As a result, it created empty files and began to install with an error.