What is PCA extraction from source data?

If you are referring to the PCA option for computing scouts time series (ie. summarize the signals from multiple dipoles into one signal only), it computes the principal mode across all the signals in input:
https://neuroimage.usc.edu/brainstorm/Tutorials/Scouts#Scout_function

If you are referring to the PCA option of the process "Sources > Unconstrained to flat map", it groups at each spatial location the three times series (x,y,z) of unconstrained minimum norm source estimation into one signal:
brainstorm3/toolbox/process/functions/process_source_flat.m at master · brainstorm-tools/brainstorm3 · GitHub
image

Both are computed with function bst_scout_value.m / PcaFirstMode():