Hi,
Please check if below solution works for you.
Technically you can use EXISTS clause instead of IN if have to use ORDER BY Clause to sort the Sub queries.
UPDATE dbo.Sheet1$ SET F01 = 0 WHERE ID IN
(
SELECT TOP 3 ID FROM dbo.Sheet1$ WHERE EXISTS
(
SELECT TOP 100 ID, ISNULL(F01,0) + ISNULL(F02,0) + ISNULL(F03,0) AS RowSum FROM dbo.Sheet1$ WHERE F01 = 1 AND F02 = 1 ORDER BY RowSum DESC
)
ORDER BY ID DESC
)
I agree with comments of PhilLenoir. It is not required to use order by clause in the sub query when you are checking the result with IN.