How to merge two table using order by?

While trying to merge two tables, when rows not matched how do I insert rows based on an order. For example in table_2 I have a column "Type" (sample values 1,2,3 etc), so when I do an insert for unmatched codes I need to insert records with type as 1 first, then 2 etc.

So far I tried below code

WITH tab1 AS
(
select * From TABLE_2 order by Type
)
merge  tab1 as Source using TABLE_1 as Target on Target.Code=Source.Code 
when matched then update set Target.Description=Source.Description
when not matched then insert (Code,Description,Type) 
values (Source.Code,Source.Description,Source.Type);

But I get "The ORDER BY clause is invalid in views, inline functions, derived tables, subqueries, and common table expressions, unless TOP or FOR XML is also specified." error because of using order by in sub query.

So how do I insert records based on an order while merging two table?

Thanks in advance.