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In this tutorial, Phil demonstrates how to clean up text strings by extracting letters (both uppercase and lowercase) and numbers, as well as removing various characters using Power Query in Excel. He begins with a table of random text strings and shows how to open Power Query from the table range. The query is renamed to "text_select," noting that periods cannot be used in names. To extract all lowercase letters, a new custom column named "lowercase" is created, utilizing the function: `text.select` with the specified column name and a list of desired characters. This method can also be applied in Power BI by copying and pasting the query code.