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John demonstrates in the video how to transform columns in Power Query when the command is not available in the ribbon. He explains that ribbon commands create M code formulas automatically, which are visible in the formula bar. Many M code formulas are not available in the ribbon commands, such as padding text values with a specific number of characters. To do this, he adds a custom column using the "text.padstart" formula to pad the ID column with zeros up to a total of six characters. This creates a new column with the padded ID values.