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Does this require a logged in user or is it open to anyone who fills out the form from a public page? Will the user filling out the form be able to submit more than one entry?
It does not require the user to be logged in, but we can definitely make that required if it helps. We are open to the user being able to submit more than one entry but it is not required.
This is going to take some custom code applied to a version of this -> https://formidableforms.com/knowledgebase/frm_setup_new_fields_vars/#kb-replace-field-options
You're going to have to get all of the values selected in form one, specific to the entry ID (or via the hidden field in form 2), and then dynamically populate the values inside the next level form field from the array taken from the hidden field or database values of the "parent" field from the previous form.
That's the only way I can wrap my head around it currently.