To extract files from a zipped folder on Windows 11, follow the following steps:
1: navigate to the location where the zipped folder is.
2: right click on the zipped folder to display its context menu.

3: click on the option Extract All... in the context menu. A dialog window will appear asking where to extract the files.
Note: as there are many formats of zipped folders, whether this option appears or not depends on the support for the format. Past versions of Windows only supported .zip, but Windows 11 seems to support .7z, .rar, and even .tar.gz archives.

4: select where to extract the files under "Files extracted to this folder:".
By default, they will be extracted to the same folder where the zipped folder is, to a newly created subfolder that has the same filename as the zipped folder excluding the file extension. For example, if the zipped folder's filepath is C:\photos.zip, the default value will be the filepath (folder path) C:\photos. If the folder C:\photos doesn't exist, it will be created automatically.
The field to set the filepath is a text box with a "Browse" button next to it. Clicking on browse lets you browse the location with a file chooser dialog so you don't have to type the filepath manually.
5: click the Extract button. A dialog with a progress bar will appear indicating the progress of the extraction. All files will be extracted to the selected location.
If the checkbox Show extracted files when complete was checked, a new window of the File Explorer will appear displaying the location where the files were extracted to.