That seems less like them decrypting encrypted archives and more like the zip format not encrypting filenames so they’re easily read from the zip’s metadata.
Which is still a privacy violation, to be clear, but not nearly on the same scale as somehow obtaining and using your passwords to decrypt data you yourself encrypted.
They not only look at your files but will decrypt any encrypted zip files to see what you have.
https://news.ycombinator.com/item?id=37086814
That seems less like them decrypting encrypted archives and more like the zip format not encrypting filenames so they’re easily read from the zip’s metadata.
Which is still a privacy violation, to be clear, but not nearly on the same scale as somehow obtaining and using your passwords to decrypt data you yourself encrypted.