The error message implies it is using a (presumed) newer variant of .7z than the Mac tools you have tried support. I encountered a similar issue with a .rar file recently which was in the new version 5 RAR format.
Whilst there are at least two tools that I know now support v5 of RAR on a Mac I do not what format/version your file is in and whether any Mac tools support it. You can see information about the .7z format here http://www.7-zip.org/7z.html
The same website lists various .7z tools that either they provide or recommend. The only Mac tool listed for .7z files is Keka which is what I have myself used in the past. The current version of Keka is 1.0.9 but there is a Keka 1.1.0beta which you could also try. See http://www.kekaosx.com/en/
Most compression tools and formats actually have multiple different compression schemes they can use although most of the time these choices are hidden and unnecessary. Zip has multiple variants, RAR has and so does .7z, if you look at the first webpage I linked to i.e. the .7z website you can see it lists at least seven different versions it can do. When you created a new test file and then successfully opened it you will have created it using a variant your tool understood, the problem here seems to be it has been created with a more esoteric or newer variant than the Mac tools you have tried understand.
If the latest or beta Keka cannot open it then you may need to try using a PC or Windows in a virtual machine, or ask the sender of the file to redo it in a different format.