H4 I-94 expired based on Old Visa - with valid I-797 - How to update?

[Musthaba 0]

I was having visa stamped with my old Employer which was valid till May 2020. I also have a H-1B transfer to the new employer and  I-797 approval with new employer is available from Aug 2018 till Aug 2021 which is not stamped yet in my passport and my spouse passport. I didn’t travel to India after Mar 2018. By my spouse and kids went to India in dec 2018 and returned back on 25-April 2019. I was working with my old employer till 4/29/2019 and my family return to US with the old employer’s visa. During POE, my spouse I-94 got updated with old employer’s visa and I-94 validity got reduced to 01-May-2020. When we tried to apply for extension on Mar 2021, we found like my spouse’s I-94 are not active even though she is having the valid I-797. My wife in the situation to move out of US now. Any one faced the same kind of issue and have any solution to fix this issue on updating I-94 based on valid I-797?