h4 denied h1 approved

[sriniraja]

I am on H1B, my wife's i94 was up to Nov 2018 , this was seen online. and she has the visa stamping as well.
Initially there was an amendment filed on my H1 due to job location change. 
This amendment reduced my H1b i94 to Feb 2018. 
In the Feb month due to internal merging, my employer filed a transfer from Company A to B before my I94 expired, Initially got denied, since the denial reason was illegible end client letter, my attorney appealed , followed up and got H1 b approval after 9 days of denial date. 
But the current status of i539 is still showing denial, reason was the primary I129 application was denied at the time this decision was taken. 
This means , even though H4 s I94 is valid until Nov 18, and I got my H1B approval until 2020 December after reopening my case, due the the I539 still in denial status, I sent them back home on May 10, denial date on letter was April 16. 
Finally planning to attend consulate, 
Question 1 : should she be considered as stayed out of status. 
Question 2: What should I answer in DS-160 form for the below question. 
"Have you ever been unlawfully present,overstayed the amount of time granted by an immigration official or otherwise voilated the terms of a US visa?" 
Please advise my options, my employer is not allowing me to speak to my attorney. I am not getting any help from attorney.