Zip file error: the destination file could not be created

When opening an encrypted zip file in Windows Explorer you may get an error message indicating that a destination file could not be created.

While this can result if you try to extract files to a directory that you don't have read / write permissions for, it may also be caused by Windows Explorer not being able to prompt the user for the entry of a password. Tonight, when I experienced this problem, I tried opening the file in 7Zip which did prompt me for a password, and I was able to successfully extract and open the zipped files.