You cannot install the Microsoft Compressed (LZH) Folder add-in on a computer that is running Windows 7.
The Compressed (LZH) Folder add-in can be installed only on certain earlier Japanese Windows operating systems. By default, Japanese versions of Windows 7 include the Compressed (LZH) Folder functionality. Therefore, the installation of this add-in is blocked in Windows 7.
This behavior is by design.
In a Japanese version of Windows 7, use the built-in feature to work with LZH archives.
LZHFLDR.MSI open LZH file OOB v1 v1.1 v1.1.1 utility LZH Archive Folder built in .LZH file compatibility Explorer