Probably windows flakes out if there is more than one program that claims it can handle rar files. You can (probably) restore its previous behavior by using the registry editor to delete the HKEY_CURRENT_USERS\Software\Classes\.rar and then re-installing 7-zip. Although, since this is windows, who knows.
I'll change calibre to not advertise that it can handle rar files (although it can) to prevent this from happening again with future calibre upgrades.
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