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In this tutorial from Excel Campus, John explains how to create dynamic data validation lists in Excel that automatically update when new items are added to the source range. The data validation list is based on the products column, and as new entries are added, they will reflect in the list without manual updates. The tutorial emphasizes using Excel tables and named ranges for this functionality. John demonstrates the process by going to the source range in the products sheet, inserting a table via the Insert tab (or using the Ctrl + T shortcut), ensuring the "My table has headers" option is checked, and then reviewing the table name.