The argument of "works of merit" and the "presence of works" is designed to accommodate the man-made doctrine that Christians are only "saved sinners" and that the only difference between a Saved Person and a Lost Sinner, is "Grace."
This is a straw man argument and there is more of a difference than that between a saved person and a lost sinner. (1 John 3:7-10)
An All-Powerful, Holy God that says that He is against sin, that He will save His people from their sins, to go and "sin no more," that we can do "all things" through Jesus Christ our Lord... is reduced to a meaningless suggestion that His conversion, regeneration, and sanctification, making us a "new man" is utterly ineffective on this side of heaven, and commands to "Be ye holy as your Father in heaven is holy," and, "without holiness, no man shall see the Lord" were never meant to mean what they say.., what makes one believe that God can accomplish it in us in the future where He has never promised it?
It sounds to me like you may have bought into "sinless perfection." I've seen people abuse and misuse the words of Jesus "go and sin no more" in John 8:11 to teach sinless perfection, yet Jesus was telling the woman to go and leave her life of sin, namely, she had been
practicing adultery. Also, Jesus cannot compromise his perfect holy standard, so of course He is not going to say, "go and just sin a little bit." Do you interpret "Be as holy as your Father in heaven is holy" as teaching sinless perfection?
Do you believe that you are sinless, without fault or defect, flawless, absolutely perfect 100% of the time exactly as God the Father is? Again, Jesus cannot compromise His perfect, holy standard, so He is not going to say, "be less than perfect," yet absolute perfection, sinless, without fault or defect, flawless for us will not become a reality until we are present with the Lord in our glorified bodies, but that is the goal to strive for. Set the bar high!
Hebrews 12:14 - Follow peace with all men, and
holiness, without which no man shall see the Lord. Those who see themselves as "holier than thou" seem to prefer this translation and imply that if you are not "holy enough" (like them) then you shall not see the Lord. In other words, you won't be saved. *The NASB reads - Pursue peace with all men, and the
sanctification without which no one will see the Lord.
To be "sanctified" is to be
"set apart, made holy." Without justification, there is no sanctification and even if we don't reach entire sanctification/sinless perfection in this lifetime (which we won't) we are still
justified by faith in Christ. (Romans 5:1)
Those who have been justified by faith are also
sanctified/set apart/made holy before God
positionally in Christ. 1 Corinthians 6:11 - Such were some of you; but you were washed, but you were
sanctified, but you were justified in the name of the Lord Jesus Christ and in the Spirit of our God.
Yet we also have progressive or ongoing sanctification in which the reality of that holiness becomes more and more evident in our actions, words, thoughts, attitudes, and motives. 1 Thessalonians 4:3-4 - For this is the will of God, your
sanctification: that you should abstain (present tense) from sexual immorality; that each of you should know how to possess his own vessel in sanctification and honor.
So becoming washed, sanctified and justified in Christ is a one time event, yet abstaining from sexual immorality is not a one time event. Here is how I see it. The
believer possess a positional, judicial standing of righteousness in Christ and, second, a
remaining need for practical, progressive holiness, in regards to our ongoing sanctification/spiritual growth towards maturity in Christ.