Unfortunately, I've done some testing and it works perfectly on my end. (Albeit slowly. Why is running zip/unzip on Windows with an SSD so much slower than doing it on Linux with a HDD?) I wonder if you're running out of storage space or something..
This is why I left the WSL instructions up, because I can't account for everyone's PC environment. Even though it's a bit heavy, WSL does a good job of being a genuine Linux environment.
In 0.2.1, the script will have some new command line options which essentially automates the workaround you did. You'll be able to run the script as
./apply-patches.sh --keep
and it will keep the patched mod directories inside "work", instead of zipping them into "output".
You can always view valid command line options by running
./apply-patches.sh --help