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In this video tutorial, Phil demonstrates how to extract uppercase and lowercase letters, numbers, and remove a wide range of characters from text strings using the text.remove and text.select functions in Power Query. The process is done in Excel, but the same code can be used in Power BI by copying and pasting the query code. Phil starts with a table in Excel containing random text strings, renames the query to text_select, and shows how to extract lowercase letters by adding a custom column with the code "text.select." The process involves opening Power Query, renaming the query, and adding custom columns to extract specific characters from the text strings.