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In this video tutorial, Phil demonstrates how to extract uppercase and lowercase letters, as well as numbers from text strings. He also shows a method to remove a variety of characters from the strings using the text.remove and text.select functions in Power Query. The process can be done in both Excel and Power BI by copying and pasting the query code. Starting with a table in Excel, Phil renames the query to text_select and creates a custom column called lowercase to extract all the lowercase letters. The code used is text.select(column name, list of characters).