Grant Fritchey shows that CTEs are not tables; they’re expressions:
The Common Table Expression (CTE) is a great tool in T-SQL. The CTE provides a mechanism to define a query that can be easily reused over and over within another query. The CTE also provides a mechanism for recursion which, though a little dangerous and overused, is extremely handy for certain types of queries. However, the CTE has a very unfortunate name. Over and over I’ve had to walk people back from the “Table” in Common Table Expression. The CTE is just a query. It’s not a table. It’s not providing a temporary storage space like a table variable or a temporary table. It’s just a query. Think of it more like a temporary view, which is also just a query.
Read the whole thing.