Cubase SE doesn't auto update files anymore?

I’m trying to get my 5 year old daughter into her music more, so thought i would set her up using my old Cubase SE. She loves using it but when i used to use it, when you opened your Cubase project Cubase would auto update any tracks/files that had been changed outside of Cubase (ie Wavelab etc), now if she makes a change to a music file and then opens her Cubase project it creates a new file 01, or 02, etc instead of auto updating her existing file?
It’s driving me nuts as I can’t see anyway of changing it to how i remember it being when i used it, and it would be so much easier for her if I can get Cubase to auto update her tracks/files again, and yes I know it’s an old programe but she’s 5 years old and enjoys using it, thanks in advance