Here is a very useful Shortcut that grabs the text from the selected file in the Finder and outputs it where you want.
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Doesn’t this work just as well using a simpler shortcut?
Get Selected Files in Finder
Get Text from Selected File
Stop and Output Text
Steve: Yes, that seems to work now. I'm pretty sure it didn't work in the past though.
It also works for extracting text from .rtf and .pdf files.