Unable to export more than 2000 records to excel from SharePoint external list

Extracted data in excel spreadsheets matters with how you setup your sharepoint list view. If you are extracting data from a listview with filtered items, it will only get the data that the listview is supposed to get.

I suggest, you extract your data from a listview that doesn't have any filters on, 'All Items'.

Hope it helps! Happy SharePointing!

Since you can see 5000 items, I would assume you already set the throttling with Set-SPBusinessDataCatalogThrottleConfig. So you're now good from the server side. Now the limitation comes from MS Office. You can change that by adding a new dword Query Instances Limit in [HKEY_CURRENT_USERSoftwareMicrosoftOfficeVERSIONCommonBusiness DataSynchronization] on the client machine. Set the value to 5000.