Is there a Windows equivalent to a [linux] squashfs archive mounted with FUSE?
A .CAB file packages a directory, but it is then only possible to extract individual files rather than have true file-like operations.
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Windows 7+ can natively mount .iso images, and Windows 10 .vhdx disk images (although I think the latter needs admin rights).
Other than that, only third-party programs support attaching archives at filesystem level, and they generally need administrator rights to install. (CD drive emulation is the most common kind.)