not sure exactly what the goal of the microflow is, images are to big and not providing all info needed.
But; Insert and update is something which is handled prior the microflow and by the Mendix runtime.
Mendix is object based. So when a user need to do stuff with data entry, which must be inserted in the database after user input. Then an object is CREATED BEFORE the page is opened and the user enters the data. The INSERT in the database is handled by the default save button or a microflow which has input parameter of the object type used and an activity which COMMITS the object. The commit will INSERT the new record in the database.
When updating an object. The selected EXISTING object is PASSED into the edit page. Where the user can update the data (or not ;-) )
Hence, you need to define the object to be updated before opening the detail/edit page.
The save button or microflow will be the same as the insert. However the COMMIT action will result in an UPDATE of the database record.
Hope the explains more about the way mendix handles data for you