Will this search through All types of folders and files? being compressed, zip, and BKF backup files too?
No... any form of compression will modify the actual structure of the underlying data... it has to, otherwise the data can't get "smaller". This will mean that the script will be unable to detect the wallets by inspecting the bytes for the indicators of a wallet file.
It's the same reason why you can't use the "hex string search" method on zip files etc... the data will have changed, and you can't really know
how it will have changed... so the "standard" markers you're looking for won't be found...
The only way to do it would be to uncompress the files and then inspect the extracted files... which could be problematic if the archives are encrypted/password protected.