Hi,

•  Seems all reports are in a .zip file as attachment by default, and our users really don't like it - Correct, this is how it is designed and as of June 2020 nothing has changed. It is known as a feature request though but without set delivery date as to best of my knowledge
•  Also dynamic naming is on individual report, the .zip folder name is default to cycled field name with some variables and we don't want to show the cycled field name to users. - This is also working as designed and I could not find in documentation nor in June 2020 version any possibility to change this. The workaround I can think of would be to setup the cycle field name in your qlik data model to character like "_" or " "  or similar.... so when used in cycle it does not change much of the content (note: if you decide to do this take into account if you will be able to use this character/fieldname in other NPrinting objects like filters import etc.... Just do a dummy and test it. I tested it using field name [ ], there is space between square brackets and it worked well when used as a cycle field.

I understand limitations of such solution and I dont want to argue them, but as a workaround it may do the job just as you wish.