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The video tutorial demonstrates how to update records in a file using Visual Studio. It begins with creating a file header, reading the records, and creating a new method for updating. A new instance of the XML document object is created, and the file is loaded. The tutorial then focuses on selecting the node to update, specifically changing the title to "Goodfellas." By selecting the target node using XML node, filtering by ID, and navigating through the elements, the record update process is completed efficiently.