I finally figured out the issue, I have to change two things.
It seems like Under
CozyRoc Zip task, Dynamic Expressions wont work and lesson learnt here.
1) I have "Delay Validation to True" which concluded me to no issue and after changing to "False", I can see the issue on the "Zip task".
2) I moved Source and Target Paths to SSIS Variable & Expression, no error message on the Task.