Is it possible for Git to consider ZIP files as directories, while also treating the files contained within the ZIP as blobs?

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No, Git does not provide native support for treating ZIP files as directories and files within them as blobs. Git considers ZIP files as binary files and stores them as blobs. If you need to access the files within a ZIP archive, you would need to extract them first. However, there are some third-party tools that can integrate with Git and provide this kind of functionality. One such tool is git-archive-zip, which allows Git to create and extract ZIP archives directly from the repository.