diff --git a/setup/components/core.py b/setup/components/core.py
index 94ee7dc..f21fa2e 100644
--- a/setup/components/core.py
+++ b/setup/components/core.py
@@ -73,7 +73,7 @@ class CoreComponent(Component):
             return False
 
         # Create additional directories for other components
-        additional_dirs = ["commands", "hooks", "backups", "logs"]
+        additional_dirs = ["commands", "backups", "logs"]
         for dirname in additional_dirs:
             dir_path = self.install_dir / dirname
             if not self.file_manager.ensure_directory(dir_path):
diff --git a/setup/core/installer.py b/setup/core/installer.py
index 0593c0c..6dcceda 100644
--- a/setup/core/installer.py
+++ b/setup/core/installer.py
@@ -170,8 +170,9 @@ class Installer:
 
             # Create archive only if there are files to backup
             if any(temp_backup.iterdir()):
-                shutil.make_archive(backup_path.with_suffix(''), 'gztar',
-                                    temp_dir, backup_name)
+                # Remove both .tar.gz extensions to prevent double extension
+                base_path = backup_path.with_suffix('').with_suffix('')
+                shutil.make_archive(str(base_path), 'gztar', temp_backup)
             else:
                 # Create empty backup file to indicate backup was attempted
                 backup_path.touch()