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I select plugin.xml and select via the right mouse button PDE-> Externalize Strings. In the following wizard the part in the screen called "Strings to externalize" is empty. But there are strings in plugin.xml to externalize. The second page of the wizard shows the changes so I assume the first page has a bug. I also believe that this worked in earlier versions of Eclipse if I remember correctly. Screenshots attached.
Created attachment 204475 [details] Screenshot1
Created attachment 204476 [details] screenshot2
If you expand the items on the first page and select the children the strings will show. I think it was designed this way, but we can do better.
Thanks Curtis for the fast response. I changed the bug category to "enhancement".
I personally don't need this feature anymore. I mark it as WORKSFORME.