Can someone explain how this writable CTE works?  Or does it not?

What I tried to do was to make those non-null/non-empty values of 
suppliers.suppliercode unique by (1) nullifying any blank, but non-null, 
suppliercode, then (2) appending the supplierid values to the suppliercode 
values for those duplicates.  The writeable CTE, upd_code, did not appear to 
work, allowing the final UPDATE statement to, unexpectedly, fill what used to 
be empty values with '-'||suppliercode.

WITH upd_code AS (
  UPDATE suppliers SET suppliercode = NULL 
  WHERE suppliercode IS NOT NULL 
  AND length(trim(suppliercode)) = 0
)
, ranked_on_code AS (
  SELECT supplierid
  , trim(suppliercode)||'-'||supplierid AS new_code
  , rank() OVER (PARTITION BY upper(trim(suppliercode)) ORDER BY supplierid)
  FROM suppliers
  WHERE suppliercode IS NOT NULL
  AND NOT inactive AND type != 'car'
)
UPDATE suppliers
SET suppliercode = new_code
FROM ranked_on_code
WHERE suppliers.supplierid = ranked_on_code.supplierid
AND rank > 1;

I have seen similar behavior in the past and could not explain it.  Any 
explanation is much appreciated.
Thanks,
-Kong
                                          

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