Thanks for the feedback. Here are a couple of ways of expanding on the number of rows you have to generate:

WITH iTally (n) AS (

SELECT TOP(SELECT TOP(1) [Rows] = COUNT(*) FROM #table2 GROUP BY id1 ORDER BY COUNT(*) DESC) n

FROM (VALUES (1),(2),(3),(4),(5),(6),(7),(8),(9),(10)) units (n)

) -- max 10 rows

SELECT id, value, id1, value1

FROM #Table1 t1

CROSS JOIN iTally x

LEFT JOIN (SELECT id1, value1, rn = ROW_NUMBER() OVER(PARTITION BY id1 ORDER BY value1) FROM #Table2) t2 ON t2.id1 = t1.id AND t2.rn = x.n

;

WITH

E1 (n) AS (SELECT 1 FROM (VALUES (0),(0),(0),(0),(0),(0),(0),(0),(0),(0)) E1 (n)), --10E+1 or 10 rows

E2 (n) AS (SELECT 1 FROM E1 a, E1 b), --10E+2 or 100 rows

iTally (n) AS (SELECT TOP(SELECT TOP(1) [Rows] = COUNT(*) FROM #table2 GROUP BY id1 ORDER BY COUNT(*) DESC)

n = ROW_NUMBER() OVER(ORDER BY (SELECT NULL))

FROM E2 a, E2 b) --10E+4 or 10,000 rows max

SELECT id, value, id1, value1

FROM #Table1 t1

CROSS JOIN iTally x

LEFT JOIN (SELECT id1, value1, rn = ROW_NUMBER() OVER(PARTITION BY id1 ORDER BY value1) FROM #Table2) t2 ON t2.id1 = t1.id AND t2.rn = x.n

;