Consider the following scenario:
1. You copy a range of cells from an Excel file having the .xlsx extension.
2. In a Word file having the .docx extension, you use paste special to paste the range as Excel Worksheet linked to the source file.
3. You save and close both files, then you move them in a different folder.
In such a scenario, when reopening the Word file, depending on the settings for updating the external links, you may not get the prompt to update the linked object and even if you get the prompt, Word does not recognize the object as being linked to an external file when you right-click it, so it is unable to update the object.