@goodlistening64
The zip file analogy you used is similar but not exact.
My analogy was meant for the absence of losing any bits, with file formats that are lossless. Even with compression, no bits are lost. But, yes, how a compressed (or zipped) file is handled by the software will differ in terms of multitasking, which would stress out low-end equipment.
My 2020 Honda Accord is an example. It plays flac files with no problem. But it takes 3 seconds to proceed to the next song. That drove me crazy. If I wanted to skip ahead several songs, it took half of forever.
With the wav format, there is no delay for me skipping songs.
So I converted all of my flac files to wav files, and use those wav files in my car (still keeping my flac files for everywhere else).
But now, in my car, I cannot search by artist, etc. Due to wav having lousy metadata capacity, searching or filtering in my car is useless. The car's display does not even show me the name of the artist. It often shows "Various Artists", because that is the directory where many songs are, due to purchasing, for example, a One Hit Wonders compilation. When the songs were flac files, it showed me the artist.
So use flac (or alac for Apple hardware), and use wav if your hardware sucks like my Accord's head unit.
By the way, if anyone has a similar Accord model (and this might be true for any Honda vehicles?), there is a developers / diagnostic menu that you can bring up. And there is a setting the improves the sound quality. I used to get fatigued listening for 10 minutes. But no more fatigue. With the developers setting enabled, the listening fatigue is gone (or takes over an hour before feeling any).
I found this video, which might be the one I saw 6 years ago.
https://www.youtube.com/watch?v=G6o0zHZt6KM
The sound quality improvement might not hit you right away. But it is real. And if you undo it a few weeks later, you will not like it.