diff --git a/scripts/modules/_bpy_internal/extensions/wheel_manager.py b/scripts/modules/_bpy_internal/extensions/wheel_manager.py
index 6d718144a93..4da93c0cda3 100644
--- a/scripts/modules/_bpy_internal/extensions/wheel_manager.py
+++ b/scripts/modules/_bpy_internal/extensions/wheel_manager.py
@@ -22,6 +22,7 @@ import zipfile
 
 from collections.abc import (
     Callable,
+    Iterator,
 )
 
 WheelSource = tuple[
@@ -180,6 +181,9 @@ def _zipfile_extractall_safe(
         zip_fh: zipfile.ZipFile,
         path: str,
         path_restrict: str,
+        *,
+        error_fn: Callable[[Exception], None],
+        remove_error_fn: Callable[[str, Exception], None],
 ) -> None:
     """
     A version of ``ZipFile.extractall`` that wont write to paths outside ``path_restrict``.
@@ -204,20 +208,69 @@ def _zipfile_extractall_safe(
     path_restrict_with_slash = path_restrict + sep
     assert len(path) >= len(path_restrict_with_slash)
     if not path.startswith(path_restrict_with_slash):
-        raise Exception("Expected the restricted directory to start with ")
+        # This is an internal error if it ever happens.
+        raise Exception("Expected the restricted directory to start with \"{:s}\"".format(path_restrict_with_slash))
+
+    has_error = False
+    member_index = 0
+
+    # Use an iterator to avoid duplicating the checks (for the cleanup pass).
+    def zip_iter_filtered(*, verbose: bool) -> Iterator[tuple[zipfile.ZipInfo, str, str]]:
+        for member in zip_fh.infolist():
+            filename_orig = member.filename
+            filename_next = path_prefix + filename_orig
+
+            # This isn't likely to happen so accept a noisy print here.
+            # If this ends up happening more often, it could be suppressed.
+            # (although this hints at bigger problems because we might be excluding necessary files).
+            if os.path.normpath(filename_next).startswith(".." + sep):
+                if verbose:
+                    print("Skipping path:", filename_next, "that escapes:", path_restrict)
+                continue
+            yield member, filename_orig, filename_next
+
+    for member, filename_orig, filename_next in zip_iter_filtered(verbose=True):
+        # Increment before extracting, so a potential cleanup will a file that failed to extract.
+        member_index += 1
+
+        member.filename = filename_next
+
+        # Extraction can fail for many reasons, see: #132924.
+        try:
+            zip_fh.extract(member, path_restrict)
+        except Exception as ex:
+            error_fn(ex)
+
+            filepath_native = path_restrict + sep + filename_next.replace("/", sep)
+            print("Failed to extract path:", filepath_native, "error", str(ex))
+            remove_error_fn(filepath_native, ex)
+            has_error = True
 
-    for member in zip_fh.infolist():
-        filename_orig = member.filename
-        member.filename = path_prefix + filename_orig
-        # This isn't likely to happen so accept a noisy print here.
-        # If this ends up happening more often, it could be suppressed.
-        # (although this hints at bigger problems because we might be excluding necessary files).
-        if os.path.normpath(member.filename).startswith(".." + sep):
-            print("Skipping path:", member.filename, "that escapes:", path_restrict)
-            continue
-        zip_fh.extract(member, path_restrict)
         member.filename = filename_orig
 
+        if has_error:
+            break
+
+    # If the zip-file failed to extract, remove all files that were extracted.
+    # This is done so failure to extract a file never results in a partially-working
+    # state which can cause confusing situations for users.
+    if has_error:
+        # NOTE: this currently leaves empty directories which is not ideal.
+        # It's possible to calculate directories created by this extraction but more involved.
+        member_cleanup_len = member_index + 1
+        member_index = 0
+
+        for member, filename_orig, filename_next in zip_iter_filtered(verbose=False):
+            member_index += 1
+            if member_index >= member_cleanup_len:
+                break
+
+            filepath_native = path_restrict + sep + filename_next.replace("/", sep)
+            try:
+                os.unlink(filepath_native)
+            except Exception as ex:
+                remove_error_fn(filepath_native, ex)
+
 
 WHEEL_VERSION_RE = re.compile(r"(\d+)?(?:\.(\d+))?(?:\.(\d+))")
 
@@ -435,4 +488,6 @@ def apply_action(
                 zip_fh,
                 local_dir_site_packages,
                 local_dir,
+                error_fn=error_fn,
+                remove_error_fn=remove_error_fn,
             )