Using OPENROWSET is a bad idea when combined with an update (if at all possible). You should import the values from the text file into a table. To do that, you simply use BULK INSERT. Remember that when you're referring the file, the path should be written as a path for the server and not your local computer.

This is an example that might not work, but it should give you an idea.

CREATE TABLE #UIDs( UID int);

BULK INSERT tempdb..#UIDs

FROM 'c:\list\12345.txt'

WITH

(

,CODEPAGE = 'RAW'

,DATAFILETYPE = 'char'

);

Update dbo.AeFSState

set FSState = 'ReleaseWait'

WHERE UID IN (SELECT u.UID FROM #UIDs);