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Your confusion sounds like those of 64 bit system files being shadowed from 32-bit applications.
If you use a 32-bit 7-zip, it can only access the SysWOW64 folder, which is camouflaged as system32 for all 32-bit applications. Are you sure you use a 64-bit 7-zip?
There are file managers which do not depend as much on the result of Windows system calls, but prefer showing the disk content as it is stored. Also they support privilege escalation if required to overwrite UAC protected files. Being old enough to have used the Norton Commander long ago, I enjoy the Far manager v3.0 in 64 bit in these days. It supports many archive formats internally, like a sub-directory, including 7-zip. And in addition, the 7-zip "extra" pack even provides an always up-to-date Far plugin.
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