Was this an upgrade from an earlier major version (e.g. Mojave) or an update from a minor version of Catalina (e.g. 10.5.5?) Am I correct in assuming this new folder icon was not present in the previous version of macOS that you were running?
I searched on Google for such an item but found no mention of a red folder icon with an exclamation point in it. I have no idea why it is on your system nor if it has any special meaning. You say it's an archive folder, so it may be a product of the archiver you are using. If it's a third-party archiving program, you might inquire about it to their tech support.