eXist v2.1dev and v1.4.x
org.exist.xquery.modules.compression.AbstractCompressFunction throws an error when the zip is stored in the database:
"org.exist.dom.NodeProxy cannot be cast to org.exist.xquery.value.AnyURIValue"
The same entry, when directly constructed in an XQuery, does not cause an error.
I have attached a test query with instructions. It will create a test zip manifest in the database, then attempt to use it.