The "Extend Code" is not a line of executable script you type. Rather, it is a proprietary algorithm and configuration preset built into FatXplorer (versions 3.0 and later, specifically in the Beta releases for 360 and OG Xbox). When users search for "FatXplorer extend code," they are looking for the correct settings to break the 2TB limit.
In simple terms: The Extend Code is the set of instructions FatXplorer uses to write a custom Master Boot Record (MBR), partition entry table, and boot sector that fools the Xbox kernel into accepting a drive larger than 2TB while utilizing the full capacity. fatxplorer extend code
Example (Python-like)
def read_file(volume, dir_entry):
cluster = dir_entry.first_cluster
out = bytearray()
while not is_eoc(cluster):
out += read_cluster(volume, cluster)
cluster = volume.fat[cluster]
return out[:dir_entry.size]