After completing the first quest, Jason McClarence will demonstrate a service where the player can sacrifice unwanted legendaries for material extraction.
To use the service, the player can speak to Jason McClarence (or later Buster):
If the player has Non-Destructive Extraction unlocked from quest "Under the Table", they will have an additional option here to spend Astra in order to preserve the item(s).
Extracting more than one item will also work, step 3 will just loop until all have been handled.
Legendary extractions serve two purposes:
As long as there is at least one legendary module available, it can be installed into a new item, provided the player can afford the cost. The cost is calculated dynamically based on how powerful the item is.
To install a legendary module into an item, the player will need to do the following:
Legendary modules can be installed in the same item type - for example, a legendary module extracted from a Spacesuit can be installed into a different Spacesuit, but not necessarily into a Pack. There are exceptions though - see an Inventory Terminal to find out which types of items a module can be installed in.
Weapons are handled similarly to other item types, after the service is unlocked as part of the quest "Needle and Lead", by speaking with Buster instead of Jason.
Inside each McClarence Outfitters location is an Inventory Terminal. Selecting the Modification Database option will display a list of all legendaries that have been extracted.
Selecting a legendary from this list will show a screen displaying what the effect is, how many of the modules are in stock, and which types of items it can be installed to.