PowerToys is enhancing its Advanced Paste feature with a file transcoding capability that allows users to convert media files into mp3 and mp4 formats. The new options, Transcode to .mp3 and Transcode to .mp4 (H.264/AAC), will include custom keyboard shortcuts and aim to simplify the conversion process for media files copied to the clipboard. Users will see a progress bar during transcoding and can customize which options appear in Advanced Paste. The feature supports extracting audio from files to save as .mp3 and converting video files to .mp4 while preserving quality settings and metadata. It utilizes the Windows.Media.Transcoding API for these conversions.