This seems fixed now.
** Changed in: file-roller (Ubuntu)
Status: Confirmed => Fix Released
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https://bugs.launchpad.net/bugs/1038336
Title:
"Exract Here" in thunar does nothing
Status in “file-roller” package in Ubuntu:
Fix Released
Bug description:
The thunar context entry "Extract Here" does not work (when using on
an archive file)
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