I recently updated from an older version of Kubuntu and was using nautilus yes it can do what I cant get Dolphin and Arc to do in nautilus. Compress a file located on a Windows SMB share. I dont have the option in the right click menu of Dolphin or anything in Actions. There are work arounds but they really are undesired requiring copying the contents locally and then compressing. nautilus could do it just fine but now the Gnome devs decided to remove some functionality I require in the latest version. Anyway annyone know why I cant compress a file on an SMB share with Dolphin?

It is entirely impossible to compress a file with a local tool w/o copying forth and back (the local process must deal with the file in the local data...)
Nautilus may have shadowed that, but there's really no technical way to do so.

The ark servicemenus apparently only deals w/ %F, ie. filepaths, not urls. Whether that is a requirement or not, I can't say, but you should be able to use the service menu when not using an smb:// url, but mounting the remote path transparently (ie. via smbmount, eg. with an fstab entry or pmount)
Nautilus likely means gnome, but at least gvfs, which does pretty much that.

If you want to compress a file remotely (i.e. w/o copying it) what is really a good idea, you'll need shell access to the server and an executable compression tool there.
Whether smb actually provides such shell mechanisms (ie. some smb protocol), I do unfortunately not know - but it would not be related to some local ark installation for sure.