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In this Excel tutorial by John from Excel Campus, he explains how to create dynamic data validation lists that automatically update when new items are added to the source range. The tutorial demonstrates using Excel tables and named ranges. John starts by navigating to the source range, which is the products sheet, and shows how to insert a table by going to the Insert tab and selecting Table, ensuring the "My table has headers" checkbox is checked. Once the table is created, it can be named, which aids in the dynamic validation list. Further resources on getting started with these tools are also mentioned in the video.