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Is it possible to update a dropdown list based on the inputs on the dropdown list itself?
I found one using the function OFFSET, however, that does not work if there is an existing list of values.

This is what I want :)

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Assuming that the drop-down lists are in column F2:F, and the definition range is in A2:A, append this formula in the first free cell under the values you already have in column A:

=unique(F2:F)

Then use =A$2:A as the "List from a range" criteria in column F, and tick the Show warning option.

When a new entry is typed in one of the drop-down list cells in column F2:F, it gets automatically included in column A, and consequently shows up as an option in those lists.

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