Some products include installers while others need to be extracted straight into the sim's Community folder. The location of that folder depends on how you installed the simulator.
Microsoft Store version
%appdata%\Microsoft Flight Simulator\Packages\Community
If you installed the simulator to a custom location, you need to go to that location and look for the Community folder there. For example, if you installed it to D:\Games\MSFS, the Community folder is here: D:\Games\MSFS\Community