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In this Excel tutorial, John explains how to create dynamic data validation lists that automatically update when new items are added to the source range. He demonstrates this using Excel tables and named ranges. The tutorial begins with the data validation list displayed in a cell, sourced from a products column. To ensure the list updates, John instructs viewers to insert a table from the Insert tab or by using the keyboard shortcut Ctrl + T. He emphasizes that the "My table has headers" option should be checked. After inserting the table, users can also rename it for clarity. This process ensures new entries in the products sheet are automatically included in the data validation list.