That appears to be what the app is designed to do. I think that MS's intent was to keep https://live.sysinternals.com/ up to date with the current versions of every utility and then sysadmins could just browse the site to run them. That would alleviate the need to keep the utilities up to date on individual machines. Just reference the web site and you get the latest versions.
Since the tools don't need to be installed what I do is to create a folder and named C:\Utils and put the executables in there. I add that folder to the system path so that when I'm in a cmd or powershell prompt, I just type in handle or procmon or whatever to run the desired app.
As far as diskmon, I suspect that whatever device driver that the tool uses to hook into the OS somehow got corrupted. I would recommend a reboot and then try again running Diskmon64.exe.
I never found diskmon to be of much use. Process Monitor is my goto tool.