The updater binary normally goes in its own 'package' which is not compressed - eg. there is a package called 'updater.exe' whose only file is 'updater.exe'.
There are two issues with this:
- The need to add a package with the same name as the updater and containing only the updater in the config file is not obvious.
- The generated file_list.xml file has a entry in the Updater.exe section, which should be removed. Otherwise the updater will try to install updater.exe from a package called updater.exe.zip.