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P V Sindhu takes on Chinese Taipei's Tai Tzu Ying for a place in the badminton singles final.
The 2012 London Olympics bronze medallist lost 2-3 to Colombia's Ingrit Valencia.
This is Colombia's fifth third-place finish and first since 2016.
Argentina are seeking to win their first major international title since lifting the Copa America in 1993.
Brazil were on top in the first half but it took them 35 minutes to break the deadlock thanks to a side-footed volley from Paqueta after nice work by Neymar.
Messi missed a golden chance in the first half but set up Rodrigo De Paul five minutes before half-time and then did the same for Lautaro Martinez five minutes from the end.
Brazil were unbeaten in 11 games and topped Group B, while Chile finished only fourth in Group A.
The world body noted that the tools that exist today to combat the coronavirus remain effective against current variants of concern including the Delta variant.
Peru take on Paraguay in the first quarterfinal.
The result means that Argentina will face Ecuador in the last eight on Saturday while Uruguay, who beat Paraguay 1-0, will play Colombia the same day.