SAS has nothing to do with it, it's a matter of tar usage. I recommend that you first make sure that tar can be handled properly at the command prompt without using x statement, and then implement it with sas.
I don't know, I haven't tried it, but the -C option of the tar command may not be supported except for the system drive.
In that case, you can use the cd command and execute the following beforehand.
cd /D e:\outsas
So, if you want to write it in one line, it would look like this
cd /D e:\outsas & tar -zxvf e:\20210618.tar.gz index_md_20210618.csv
Give it a try.
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