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This issue occurs when Compressed File Handling is set to Action: Block and Applies to: All compressed files.

block all compressed files

To resolve the issue, change the Compressed File Handling settings:

  1. On the IWSVA management console, go to HTTP > Advanced Threat Protection > Policies > Virus Scan Global Policy.
  2. Click the Virus/Malware Scan Rule tab and go to the Compressed File Handling section.
  3. Do one of the following:
    • Set the action to Pass or Quarantine.
    • Select the Compressed files if radio button instead of All compressed files.

You will now be able to untick the Archives option and save the modified settings.