Tried version 2.1.1.app. Tried dragging a folder on it but it can back with the "UnIdentified Developer" message. So I use a right mouse click and open to override that nonsense to run ePubZip/Unzip and then cancelled out after it successfully launched.
I was then able to drag and drop folders on it and it worked perfectly.
This is with Sierra 10.12.2 on my Desktop Mac. I will update to 10.12.3 and try again with a fresh download.
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