I missed the bit of excitement there unfortunately, but that screen shot looks like your creating a compressed file, not extracting one. Like I said video files are rarely compressed because their format doesn’t compress well, if at all.
Anyway as a side note Blu-ray files are generally large in size. Could be 5-10Gb sometimes. Only worth the effort if your big into it and want to keep it. Target file sizes of about 500Mb to 1Gb for one hours viewing. Acceptable quality.
Also google “how to view file extension and size in explorer” for your operating system. This may help you a lot.