Unable to compress / zip zero byte files in external exFat drive in Mac OS

Why can't I compress/zip a zero byte file which is located in an external exFat drive in Mac OS ? I keep getting this error, The operation couldn’t be completed. Undefined error: 0. I have some marker files I require which don't contain any data so I need them. I am able to compress the same folder within my internal hard disk with no problems. I am using a Mac m1 max with Monterey 12.4. I have tried it with the p7zip tool from 7zip.com and it works. It just doesn't work with the native compression tool.