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In this video tutorial, Phil demonstrates how to extract uppercase, lowercase, and mixed letters, as well as numbers from text strings. He also shows a method to remove a wide range of characters from strings using text.remove and text.select functions in Power Query. The process is done in Excel, but the code can be used in Power BI by copying and pasting. By creating custom columns using text.select function, you can extract specific characters like lowercase letters. Remember to open Power Query from table data before renaming the query and applying the code.