Your getting this error because your select statement can return more than one result. You can not update a single cell with a query that can potentially return more than one result.
A common approach to avoid this with many SQL languages is to use a top 1 or something like that to assure the engine that you will only return one result. Note that you have to do this even if you know the query will only return one result. Just because YOU know it doesn't mean that the engine knows it. The engine also has to protect you from future possibilities not just things as they are right this moment.
Update:
I noticed you updated your question to Oracle. So in that case you could limit the subquery to a single result using the where rownum = 1
clause. As other answer pointed out you'd have to use further logic to ensure that top 1 coming back is the right one. If you don't know which one is the right one then solve that first.
The thought also occurs to me that you might be misunderstanding what DISTINCT
does. This ensures that the return results are unique - but there could still be multiple unique results.