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JavaScript (Firefox 30+), 465 427 425 bytes

JavaScript (Firefox 30-57), 465 427 425 bytes

JavaScript (Firefox 30+), 465 428 bytes

f=s=>/\{/.test(s)?f(s.replace(/([^,{}]*\{[^{}]*\})+[^,{}]*/,t=>t.match(/[^{}]/g).map(u=>u.split`,`).reduce((a,b)=>[for(c of a)for(d of b)c+d]))):s.split`,`.join` `
s=>f(`{${s.split` `}}`.replace(/\{([-\w]+)\.\.([-\w]+)(\.\.(\d+))?\}/g,(m,a,o,_,e)=>{m=(a>'@')+(a>'_');a=parseInt(a,m?36:10);o=parseInt(o,m?36:10);e=+e||1;if(o<a)e=-e;for(r=[];e<0?o<=a:a<=o;a+=e)r.push(m?a.toString(36):a);r=`{${r}}`;return m-1?r:r.toUpperCase()}))

f=s=>/\{/.test(s)?f(s.replace(/([^,{}]*\{[^{}]*\})+[^,{}]*/,t=>t.match(/[^{}]/g).map(u=>u.split`,`).reduce((a,b)=>[].concat(...a.map(c=>b.map(d=>c+d)))))):s

JavaScript (Firefox 30+), 465 427 425 bytes

f=s=>/\{/.test(s)?f(s.replace(/([^,{}]*\{[^{}]*\})+[^,{}]*/,t=>t.split(/[{}]+/).map(u=>u.split`,`).reduce((a,b)=>[for(c of a)for(d of b)c+d]))):s.split`,`.join` `
s=>f(`{${s.split` `}}`.replace(/\{(-?\w+)\.\.(-?\w+)(\.\.(\d+))?\}/g,(m,a,o,_,e)=>{m=(a>'@')+(a>'_');a=parseInt(a,m?36:10);o=parseInt(o,m?36:10);e=+e||1;if(o<a)e=-e;for(r=[];e<0?o<=a:a<=o;a+=e)r.push(m?a.toString(36):a);r=`{${r}}`;return m-1?r:r.toUpperCase()}))

f=s=>/\{/.test(s)?f(s.replace(/([^,{}]*\{[^{}]*\})+[^,{}]*/,t=>t.split(/[{}]+/).map(u=>u.split`,`).reduce((a,b)=>[].concat(...a.map(c=>b.map(d=>c+d)))))):s.split`,`.join` `
g=s=>f(`{${s.split` `}}`.replace(/\{(-?\w+)\.\.(-?\w+)(\.\.(\d+))?\}/g,(m,a,o,_,e)=>{m=(a>'@')+(a>'_');a=parseInt(a,m?36:10);o=parseInt(o,m?36:10);e=+e||1;if(o<a)e=-e;for(r=[];e<0?o<=a:a<=o;a+=e)r.push(m?a.toString(36):a);r=`{${r}}`;return m-1?r:r.toUpperCase()}))
h=(s,t=s.replace(/\{[^{}]*\}/,""))=>s!=t?h(t):!/[{}]/.test(s)

<input oninput="o.textContent=h(this.value)?g(this.value):'{Invalid}'"><div id=o>

JavaScript (Firefox 30+), 465 bytes

f=s=>/\{/.test(s)?f(s.replace(/([^,{}]*\{[^{}]*\})+[^,{}]*/,t=>t.match(/\{[^{}]*\}|[^{}*]/g).map(u=>u[0]=='{'?u.slice(1,-1).split`,`:[u]).reduce((a,b)=>[for(c of a)for(d of b)c+d]))):s.split`,`.join` `
s=>f(`{${s.split` `}}`.replace(/\{([-\w]+)\.\.([-\w]+)(\.\.(\d+))?\}/g,(m,a,o,_,e)=>{m=(a>'@')+(a>'_');a=parseInt(a,m?36:10);o=parseInt(o,m?36:10);e=+e||1;if(o<a)e=-e;for(r=[];e<0?o<=a:a<=o;a+=e)r.push(m?a.toString(36):a);r=`{${r}}`;return m-1?r:r.toUpperCase()}))

f=s=>/\{/.test(s)?f(s.replace(/([^,{}]*\{[^{}]*\})+[^,{}]*/,t=>t.match(/\{[^{}]*\}|[^{}*]/g).map(u=>u[0]=='{'?u.slice(1,-1).split`,`:[u]).reduce((a,b)=>[].concat(...a.map(c=>b.map(d=>c+d)))))):s

f=s=>/\{/.test(s)?                  while there are still {}s
 f(s.replace(                       recursive replacement
  /([^,{}]*\{[^{}]*\})+[^,{}]*/     match the deepest group of {}s
  ,t=>t.match(                      split into
   /\{[^{}]*\}|[^{}*]/g             either a {} term or a bareword
   ).map(u=>                        for each term
    u[0]=='{'?                      if it's a {}
     u.slice(1,-1).split`,`:        turn it into an array
     [u]                            otherwise make a dummy array
   ).reduce((a,b)=>                 loop over all the arrays
    [for(c of a)for(d of b)c+d]))   cartesian product
  ):s.split`,`.join` `              finally replace commas with spaces
s=>f(                               change spaces into commas and wrap
 `{${s.split` `}}`.replace(         match all {..} seqences
   /\{([-\w]+)\.\.([-\w]+)(\.\.(\d+))?\}/g,(m,a,o,_,e)=>{
    m=(a>'@')+(a>'_');              sequence type 0=int 1=A-Z 2=a-z
    a=parseInt(a,m?36:10);          convert start to number
    o=parseInt(o,m?36:10);          convert stop to number
    e=+e||1;                        convert step to number (default 1)
    if(o<a)e=-e;                    check if stepping back
    for(r=[];e<0?o<=a:a<=o;a+=e)    loop over each value
     r.push(m?a.toString(36):a);    convert back to string
    r=`{${r}}`;                     join together and wrap in {}
    return m-1?r:r.toUpperCase()})) convert type 1 back to upper case

JavaScript (Firefox 30+), 465 428 bytes

f=s=>/\{/.test(s)?f(s.replace(/([^,{}]*\{[^{}]*\})+[^,{}]*/,t=>t.match(/[^{}]/g).map(u=>u.split`,`).reduce((a,b)=>[for(c of a)for(d of b)c+d]))):s.split`,`.join` `
s=>f(`{${s.split` `}}`.replace(/\{([-\w]+)\.\.([-\w]+)(\.\.(\d+))?\}/g,(m,a,o,_,e)=>{m=(a>'@')+(a>'_');a=parseInt(a,m?36:10);o=parseInt(o,m?36:10);e=+e||1;if(o<a)e=-e;for(r=[];e<0?o<=a:a<=o;a+=e)r.push(m?a.toString(36):a);r=`{${r}}`;return m-1?r:r.toUpperCase()}))

f=s=>/\{/.test(s)?f(s.replace(/([^,{}]*\{[^{}]*\})+[^,{}]*/,t=>t.match(/[^{}]/g).map(u=>u.split`,`).reduce((a,b)=>[].concat(...a.map(c=>b.map(d=>c+d)))))):s

f=s=>/\{/.test(s)?                  while there are still {}s
 f(s.replace(                       recursive replacement
  /([^,{}]*\{[^{}]*\})+[^,{}]*/,    match the deepest group of {}s
  t=>t.match(/[^{}]+/g              split into {} terms and/or barewords
   ).map(u=>u.split`,`              turn each term into an array
   ).reduce((a,b)=>                 loop over all the arrays
    [for(c of a)for(d of b)c+d]))   cartesian product
  ):s.split`,`.join` `              finally replace commas with spaces
s=>f(                               change spaces into commas and wrap
 `{${s.split` `}}`.replace(         match all {..} seqences
   /\{([-\w]+)\.\.([-\w]+)(\.\.(\d+))?\}/g,(m,a,o,_,e)=>{
    m=(a>'@')+(a>'_');              sequence type 0=int 1=A-Z 2=a-z
    a=parseInt(a,m?36:10);          convert start to number
    o=parseInt(o,m?36:10);          convert stop to number
    e=+e||1;                        convert step to number (default 1)
    if(o<a)e=-e;                    check if stepping back
    for(r=[];e<0?o<=a:a<=o;a+=e)    loop over each value
     r.push(m?a.toString(36):a);    convert back to string
    r=`{${r}}`;                     join together and wrap in {}
    return m-1?r:r.toUpperCase()})) convert type 1 back to upper case