"Add 'Compress to' Option to Right-Click Menu"

I recently installed the optional Windows 11 update and followed up with the regular update today (July 9th). According to the release notes, a new "compress to" feature was supposed to be included in the right-click menu. However, I can't seem to locate this functionality.

Is it possible that the presence of 7zip on my system is causing a conflict? I'm interested in exploring other compression options beyond 7zip and would appreciate any guidance on how to enable this feature.