PKZip in 5.5.4

WinSCP 4.x on Windows 7 using Application Interface. User had ability to select files locally, right click and have PKZip avaialable in the menu. Upgrade to 5.5.4 on WIndows 7 using Application Interface that option is not available. When right clicking on a file the menu is totally different. Is it somewhere else? How do I get that option back?

WinSCP now uses its own context menu for local files by default. There's command System Menu at the end of the context menu to open the "old" menu.
See https://winscp.net/tracker/163

Or you can opt in Preferences to open the system menu by default:
https://winscp.net/eng/docs/ui_pref_panels_local