When you extract, the new model is automatically appended to the original. This new model will have the exact polygon count that was active on the source model at time of extraction, plus additional polygons for the inner surface and walls. So if your model is at the highest level when you extract, the new model will have one level that is equal to the highest. Alternatively you can be at the lowest level when you extract. In this case, after you have selected and unmasked the extracted model you can then divide it to have the original number of levels before you proceed to projection. You’ll now have a multi-res model.
The only reason why ProjectAll would be disabled is if you don’t have more than one SubTool. In that case, you didn’t follow the instructions as I laid them out. ProjectAll will project all details from the visible SubTools onto any visible (or unmasked) portions of the currently selected SubTool.