Dirty reads with READ UNCOMMITTED may work if the same columns are not updated and used in other sections, but I'm afraid this is a fragile solution.
For a more consistent solution, you can mix ROWLOCK / UPDLOCK / NOLOCK depending on the operations. Fe
UPDATE
TABLE1 WITH (ROWLOCK)
SET
col1 = TABLE2.col2
FROM
TABLE1 WITH (ROWLOCK, UPDLOCK)
INNER JOIN TABLE2 WITH (NOLOCK) ON (TABLE1.ID = TABLE2.ID)
If your statements update mostly different lines, then ROWLOCK can be omitted.
,
ALTER TABLE TABLE1 SET (LOCK_ESCALATION = DISABLE)
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