I need a form builder that can automate updates to lookup or dropdown fields. BitForm has an import feature. Can Bit Integrations automate this?

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Sorry to say, It's not possible with Bit Integrations.

The main purpose of Bit Integrations is to send data from WordPress forms, WooCommerce, LMS, and Membership to other plugins, Google Sheets, CRMs, and email marketing tools. We made this tool for a WordPress-based simple use case, and I think it exactly does what we built for.

Note: We will only add integrations in this plugin, and all the triggers in Bit Integrations are WordPress based. We don't have a plan for any features other than integrations.

Bit Form

Dynamic lookup is not possible in Bit Form, but if you import post terms users ACF Field Options (Taxonomy) these are updated in the drop-down field, if you want, you can make any of them dynamic.