Embed vs. Referencing question

Hello, I have a question about whether to embed vs whether to reference another collection.

In an example of needing to update an embedded object within a parent object that other parent objects also contain, even if the “many” isn’t a large number, wouldn’t we still want to only have to update the child object once using referencing? If we want to make sure the child object is changed in all of the parent objects, we’d have to update it as many times as parents contain it. In this case, wouldn’t we want to separate out that child object into its own collection?

Thanks for any clarification!