Issues with Extract function in Adobe Premiere Pro

Hi Everyone, 

I am having issues with the extract function in Adobe premiere. I set my in and out points on my timeline, then hit the extract keyboard shortcut, and it comes out with a blank space in my timeline, and some of the audio not extracted. I'm wondering if I have a setting wrong or something, possibly I clicked something off or on that I shouldn't have. I am attaching two files for reference. I am running a PC with Windows 10, 16 GB ram and the most recent version of Premiere.

Thanks

Andrew

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