Hi @Muhammad Shoaib ,
Welcome to Microsoft Q&A Platform. Thanks for posting the query.
I looked at similar issues from Customers in recent past and it is observed that the compression method on zip file is the root cause. Currently data factory can load zip files which have supported method, like Deflate. Please refer to the official documentation and the recommended approach is to use deflate method.
Please let us know if this helps in resolving the issue. If issue persists, please share with us further details on data factory name, region and integration runtime used to help in further investigation.