Removing part of a filename for multiple files on Linux

First of all use 'sed -e' instead of '\e'

And I would suggest you do it this way in bash

for filename in *.fasta; do 
    [ -f "$filename" ] || continue
    mv "$filename" "${filename//test.extra/}"

done

Try rename "extra.test" "" *

Or rename 's/extra.test//;' *

$ find
./extra.test-eggs.txt
./extra.testbar
./fooextra.test
./ham-extra.test-blah

$ rename "extra.test" "" *
$ find
./-eggs.txt
./bar
./foo
./ham--blah