RAR extraction does not put files in newly created directory

When extracting a complete directory from a .rar archive (drag to the ".." while viewing the internals of the archive), the directory is correctly created, and the files are correctly extracted, but they are created at the same level of the newly created directory, instead of inside this one.

I tried that with both the 7.03 and 7.50 version, and with several .rar files. I did not try an external plug in for rar though.