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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 characters. He uses the text.remove and text.select functions in Power Query, applicable in both Excel and Power BI. Starting with a table of random text strings, he opens Power Query by selecting the table data and renaming the query to "text_select." To extract all lowercase letters, he adds a custom column called "lowercase," using the code text.select with the column name and a specified list of characters to extract.