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please consult a lawyer. it means that your underlying H1 petition was approved but your change of status to H1 was not. so for you to work on H1, you need to leave the country, apply for H1 visa stamp, and return to US to start working on H1. in the meantime, if you have any valid status on your stay (ie you are on F1), you can continue with it and complete your program. you will not be able to work on H1 after you graduate unless leave, get visa stamp, and return as described above.