There must be something funky with your setup. I just tested using the exact version of 7-zip and latest version of VLC in a fresh windows VM, and it doesn't ha

There must be something funky with your setup. I just tested using the exact version of 7-zip and latest version of VLC in a fresh windows VM, and it doesn't have you issue you described. I can even see the file lying around in %TEMP%\7z[random characters], and they aren't deleted until I close the 7-zip window.