Your instinct is correct. The reasoning they provided is wrong. It’s also a very common mistake, so it’s not surprising.
Basically, while it’s true that after the first draw, the probabilities change, before any drawing takes place, the order of the draw makes no difference probabilistically.
It’s probably easiest to demonstrate via examples. Let’s construct a very simple example - there are only two people (Person A and Person B) and each has two tickets and there are two prizes. As in your example, let’s say the 2nd prize is awarded first.
There are really only 4 unique results here:
1st prize - Person A, 2nd prize - Person A
1st prize - Person A, 2nd prize - Person B
1st prize - Person B, 2nd prize - Person A
1st prize - Person B, 2nd prize - Person B
Let’s dive into the numbers a bit.
If Person A wins the 1st prize (1/2 the time), there are 3 tickets left. Person A has a 1/3 chance of winning the 2nd prize (the second ticket was already used).
But if Person B wins the 1st prize (1/2 the time), Person A now has a 2/3 chance of winning the 2nd prize.
So, 1/2 of the time after the first draw, Person A has only a 1/3 chance of getting the 2nd prize, but the other 1/2 of the time after the first draw, Person A has a bigger 2/3 chance of getting the 2nd prize.
Those two offset.
The same thing happens in your case. The chances of somebody winning the 1st prize may be reduced if they win lesser prizes first, but that’s offset by the increased chance if somebody else wins the lesser prizes. Those chances offset each other.
That said, and as you note, while there may not be a mathematical difference there is a psychological difference to prefer drawing the top prize last.