After playing around for a while I have now discovered a work around for the issue of decompressing .7z files within IARL that was preventing games from launching. Here's the steps:
1. Go to Settings > Add-ons > Search and search for 'System Tools', you should get a result named 'Script - System Tools.'
2. Install if it isn't already enabled.
3. On a PC navigate to:
/storage/.kodi/addons/virtual.system-tools/bin/
/storage/.kodi/addons/plugin.program.iarl/resources/bin/7za/
6. Rename the file you copied over from System Tools to 7za.Nix
7. SSH in and run:
chmod a+x /storage/.kodi/addons/plugin.program.iarl/resources/bin/7za/*
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