This is mostly a curiosity question. I've just experienced a situation where on a test database I had the following query:
update table
set column1 = 1
where column2 in (1,2)
But this kept executing with the error that subquery returned more than one value.
Now I checked to make sure I did not have multiple identity keys or that the 'in' values were unique. so for all intents and purposes this should not have happened.
Checking on the LIVE copy of the database, same query did not have an issue. Hence, finally, my question is:
What can you do to the Microsoft SQL Server settings or database structure that would create such a scenario?
As mentioned in comments you probably have poorly written trigger. Sample scenario:
DBFiddle Demo
When only one row is affected everything works.