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In this video tutorial, Phil demonstrates how to clean up text strings by extracting letters (both uppercase and lowercase) and numbers, as well as removing various unwanted characters. He utilizes the text.remove and text.select functions in Power Query, applicable in both Excel and Power BI. Phil starts with a table of random text strings, opening Power Query via the "From Table/Range" option. He renames the query to "text_select" (due to naming restrictions) and creates a custom column named "lowercase" to extract all lowercase letters using the text.select function, specifying the column and list of desired characters.