H1B pending petition withdraw but COS was filed before withdraw but after i94 expiry

[AnkitG]

My Wife is also a Company A employee and her I94 got expired on June 30 2017. An extension was filed before expiry but the case is still pending with USCIS. She is now not on payroll as 240 days are over. 

The H1 is still pending with USCIS. 

I have filed a COS for her from H1 to H4 & EAD  (on my H1 which is also under processing with USCIS and I-140) on Mar 15 2018.

Now Company A is saying she need to resign and once resigned, they will WITHDRAW her H1 application which is pending with USCIS. 

Questions:

1.Will she be considered as "Out of Status" from July 01 2017 to March 15 2018 because company would withdraw the pending petition? Will it create a void/vacuum for this period?

2.Although we have filed CoS from H1 to H4 for her before the withdraw (that needs to be performed yet by company), does she need to travel back to India before withdraw of H1 or can she stay in US?
1.If she don't travel back will her status be "unlawful presence" and might have that > 180 - 3 yr ban rule if she don't travel?

3.Does the New 60 day revoked/withdrawn H1B Rule applied on Jan 17 2017 applies in this case as we applied for COS before the withdraw of her H1 but after I94 expiry?
 

[pontevecchio]

1.NO

2. It would seem the COS was filed in a timely manner.

3. It may.

Now please involve a lawyer to make sure she has no future issues. The safest IMHO is for her to leave and return with a H4 visa.

Under the political circumstances of our times discuss the matter with a Lawyer soon.