Try to create this function
create function dbo.RemoveSpecialChars (@s varchar(256)) returns varchar(256)
with schemabinding
begin
if @s is null
return null
declare @s2 varchar(256)
set @s2 = ''
declare @l int
set @l = len(@s)
declare @p int
set @p = 1
while @p <= @l begin
declare @c int
set @c = ascii(substring(@s, @p, 1))
if @c between 48 and 57 or @c between 65 and 90 or @c between 97 and 122
set @s2 = @s2 + char(@c)
set @p = @p + 1
end
if len(@s2) = 0
return null
return @s2
end
and then do your UPDATE
UPDATE mycode
SET newName = dbo.RemoveSpecialChars(mycode)