Is there any other way to extract archive files in the same folder location in expanded mode?
In the image below I want the extraction results to be in "folder 1" not in the parent folder.
Yes. Pick recreate source folder structure and uncheck Copy to single level if all items are in the same folder in Preferences / File Operations / Copying Files / Confirmation
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Another option is to drag the archive with the right button and drop it on the target folder.
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Ah...thank you very much, @lxp . I didn't know the setting was there... 
Thank you for the new trick, @Jon. I never knew about this trick. I've tried it and it works... 