I think the error is in your logic, not in the functionality.  I'm not sure what you're expecting the MIN of the ROW_NUMBER to produce, but it will always be...

You don't want to do this - at least not this way.  You're trying to convert a denormalized table into a different kind of denormalized table.  What you need to...

Use a CTE to filter your target table.

WITH Tgt AS (
    select T.*
    FROM @Targettable T
    INNER JOIN @FilterTable f on t.bid = f.id
    WHERE...

Joe,

First, don't you think it's time...

The part in parentheses is just a Table Value Constructor and the v(TemplateName, Val) is just providing aliases for the fields returned by the Table Value Constructor.  The CROSS APPLY...