macOS Sierra Archive Utility compress popping up new windows

After updating my macOS to Sierra I've started experiencing a strange bug. When trying to compress some stuff to a zip (via the Archive Utility) it pops up a new Finder window after each compression.

Here are my Archive Utility settings:

As you can see "Reveal archive in Finder" is turned off. I've also tried turning it on and off a few times, but result was always the same.

It started to happen after upgrading to Sierra.

My current macOS version is 10.12.2.

Is there any fix to this?

After some experimenting, I finally found a solution of sorts.

Before I get to it, just a word on the Archive Utility preferences. As far as I can tell, the preferences on the lower half of the window no longer have any effect on the Finder's archive creation process. It may have in the past, but the Finder no longer uses Archive Utility for archive creation, only for expansion. For the record, Archive Utility is located at /System/Library/CoreServices/Applications/Archive Utility.app.

The problem arises from the Finder's desire to reveal the archive it's just created. If you are in column view and are viewing the contents of a folder, and want to compress that folder and do so like in the image below, the Finder may open a new window to reveal the archive because it doesn't want to lose your folder selection in the current window.:

If instead in column view, you select a file (it must be a file) in the same column as the folder, and then right-click on the folder you want to compress, like in the image below, the Finder won't open a new window (it will change your current file selection to the newly created file).

So far, that's the closest I've come to any kind of "solution".

Checking and unchecking the "Reveal archive in Finder" option in Archive Utility -> Settings didn't work for me either, until I killed Finder.

To do this open the Terminal and type in:

killall Finder

Then hit enter, which should reload the Finder windows. - If you are uncomfortable with the terminal, you should be able to just restart your computer.

Pre solution fiddles

I did some tinkering with the setting before I got it working.

Opened Archive Utility -> Settings

The "Reveal archive in Finder" option was unchecked, so I checked it and closed the Archive Utility for it to update.

Then reopened Archive Utility, unchecked the option, closed the Archive Utility again.

Then ran the killall Finder command in Terminal