So it detects if there's a single folder inside the zip containing all the files or all the files directly inside the zip? That's useful!
Reminds me of Minecraft texture packs back in the day where nobody really understand how to make a texture pack and all used Ms paint and this was a common issue as clicking "add to .zip" on the folder would make a containing folder and not work. This would mean each user would have to extract it and have folders in their resource pack folder instead of zips.
This... worked, but when the client(basically a large QOL mod) ~50% of people used added the ability to put texture packs in folders to organize them it treated the unzipped packs like a folder so they stopped working.