Can I insert an Excel worksheet into a Word document that automatically updates changes to the original Excel file?

Answer 1

You can either insert a worksheet as an embedded object or a link to a file.

Embedded means it exists in that word program only as an Excel worksheet. If you want to use another file and just show the contents of it in Word, you would insert it as a link. In that case you still make all the edits in the Excel file, they will just update in the Word Document, but they will not exist IN the word document.

It sounds like you want a link, not embedded.