If I used windows, I would totally do this....
this post was submitted on 29 Feb 2024
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In this context (IIRC) smart means "if this zip contains a single folder with contents, directly extract that folder, but if the zip contains files and/or folders, extract all that to a new folder named the same as the zip file".
Some people zip folders while some people zip the files in a folder. Smart extraction just handles both automatically.