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In this video, Phil demonstrates how to extract uppercase, lowercase, and mixed letters, numbers, and wide ranges of characters from text strings using the text.remove and text.select functions in Power Query. The process involves renaming queries, adding custom columns, and using specific code to extract desired characters. The tutorial is performed in Excel, but the code can be used in Power BI by copying and pasting. By following these steps, users can efficiently clean up text strings in their data.