Yes, but not exactly the same as described.
Xarchiver will first copy the text file to the preferred temp directory (default: /tmp), and user will have to make changes and save the changes made temporarily first. To actually update the text file, user has to do the following:
- Go to Action > Add (or press Ctrl+D)
- Click Selection tab, and then select the text file in the temp directory (default: /tmp/xa-*/filename.txt)--This step may not require user action, as the sidebar might already show the "Recent" column and the corresponding text file may be selected already
- Click Options tab, and then fill the checkbox "Freshen and replace" to only include the text file with changes from the temp directory--This step may need to do only once
- Finally, click Add to finish.
Following above steps will update the text file without extracting in Xarchiver. The steps are less intuitive and somewhat troublesome, but that is just the way a lightweight archive manager handles such user action.
If user wanted the similar behaviour to edit and save files as File Roller does, the closest alternative would be Engrampa (screenshot below).
Engrampa is an archive manager for MATE, which is also the fork of File Roller. In recent years, File Roller has been replaced by Engrampa in MATE and Xfce.