Lossless compression algorithms (like LZMA used in 7-Zip) are limited by the entropy of the data. While text files compress well, binary executable files (DLLs, EXEs) are already highly optimized and rarely compress more than 50-60% without losing functionality.
Millions of users type this exact phrase into search engines every month. They are looking for a magic solution: a 50MB or 100MB file (the "highly compressed" part) that installs the full power of Word, Excel, and PowerPoint. The "UPD" part typically refers to an "Update" file or a repack format used by cracked software groups.