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i'm a little bit confused with default picklist values. Let's say there is need to be ensured that every time record is created or updated value is populated. I believe that setting Use first value as default value or Default value can help but colleague says that there is need to set up only 'Required` for this field. Could you please help me to choose right option?

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Default value:- when record is getting created and user doesn't select any value for picklist then default value will be populated automatically. This doesn't effect when records are updated. Also user can remove default selected value to make field value balnk.

Required:- required will make sure that every time record is created or updated we will need to select a value in picklist field. We cann't make this picklist blank.

So for your condition we need to make field required.

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