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In this video, Phil demonstrates how to extract data from records and lists in Power Query, addressing a frequently asked question. Records and lists are fundamental to Power Query, and extracting data with a custom column is easier than one might think. While Phil uses Excel for the demonstration, the method is applicable to Power BI as well. He explores scenarios involving records within lists and vice versa, highlighting various row characteristics in the data. The video discusses data structures commonly encountered from sources like APIs or when retrieving data from SharePoint, emphasizing the importance of knowing how to extract specific information from these complex data formats.