In ADF we cannot perform upsert to csv files directly. For table based sinks only, in copy activity and data flow you have the upsert option.
As a workaround, you can have a table in Azure SQL and use that for upsert operation. Once the copy to table completes, you can have another copy activity to copy from table to a csv file.
For more details on how do we implement upsert in copy activity, please refer to this video and for the data flow you may refer to this video.
Please let us know if you need any other information or detail regarding this,
Thank you