If you specify "zip archive" in packers, the zip archives will be scanned.
The difference between the "types" options is the way it is determined what file should be scanned.
If you specify "name extension", the files with .exe extension (and many others, it's just an example) will be scanned - i.e. the file notepad.exe will be scanned; however, if you rename it to notepad.jpg, it will not.
If you specify "content", it means that any file will be opened and its type will be analyzed. In our example, even the renamed notepad.jpg will be scanned, since it will be recognized as EXE file by its header.
I'm not sure if the same holds for archives (i.e. for "name extension" settings, only the files with ZIP extension would be checked inside; for "content", the file content would be analyzed and if it's determined as ZIP, it will be scanned inside). You can try yourself - pack EICAR into zip file, scan, then rename .zip to something else (.txt), and scan again - you'll see if there's any difference between the "type" setting here.