What an .olm file is
An .olm file is an archive made by Outlook for Mac: Tools → Export (File → Export in older versions) saves the mail, contacts, calendar, tasks and notes you choose into one file. Outlook for Mac 2011, 2016, 2019 and Microsoft 365 write it, and it is the export format Microsoft documents for legacy Outlook for Mac.
Inside, an .olm is a ZIP archive of XML files: one file per message, one file for the address book, one for the calendar, plus the attachments. That is why a ZIP tool can open it, but shows thousands of XML files instead of email.