Hello Mike :)
The official documentation is here:
Application Manifest (Windows)
There are two main solutions. Firstly, using the manifest is fine, but will disable all Program Compatibility Assistant (PCA) Mitigation.
Alternatively, you could not be detected by PCA at all. Using the 32bit Compatibility Administrator from Microsoft Application Compatibility Toolkit, you are being picked up on two shims, 'Install' (*instal* in file name) and 'Setup' (*setup* in file description).
So, you could rename the application & change the file description. But then you completely lose all PCA as well, so you may as well have used the manifest.
So yeah, probably using mt.exe to set the manifest in some sort of hopefully automated post build script in 7-Zip is the way forward.
Richard