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In this video, Phil demonstrates how to clean up text strings by extracting uppercase and lowercase letters, as well as numbers, using Power Query in Excel. He introduces the functions `text.remove` and `text.select` for character extraction. The tutorial begins with a table of random text strings. To access Power Query, users need to click on the table data and select "From Table/Range." Phil renames the query to "text_select" (noting that dots are not allowed in query names) and proceeds to create a custom column for lowercase letters. He outlines the code structure for extracting characters, which involves specifying the text column and the list of desired characters.