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Formatting visuals in Power BI is primarily accomplished through the Formatting pane, which provides a comprehensive set of options to adjust the visual properties. This pane allows users to modify various aspects of visuals, including colors, fonts, labels, data labels, gridlines, and more, tailoring the appearance of each visual to meet specific design preferences and presentation needs.

The importance of the Formatting pane lies in its flexibility and ease of use. Users can enhance their visuals with just a few clicks, making it straightforward to achieve the desired aesthetic and to improve clarity and effectiveness in data presentation. This feature is integral to creating professional and visually appealing reports that effectively communicate insights derived from the data.

In contrast, managing data sources through the Data pane focuses on data organization rather than visual appeal. Editing raw data files is related to data preparation rather than formatting visuals, and applying themes from external sources does not directly deal with individual visual properties but rather applies a consistent style across an entire report. Therefore, utilizing the Formatting pane is the correct and most effective method for formatting visuals within Power BI.

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