Traveling on H4 for India Vacation while new H1B is on process


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Can someone clarify me with the below question(s)? 

1. I am on H1B and My wife is currently on H4. We got our renewal extension until 2019. Also I am planning to file a fresh H1B visa for my wife in next two weeks during April cap. Once it is filed, we have a plan to go to India in April end and get stamped with renewal petition and come back before May. Is it fine for my wife to travel to India on H4, along with me and come back while her new H1B is on process? 

2. Will there be any issues in terms of I94 or Change of status (COS)? 

3. How to handle this situation? Some people say we can travel and come back in H4 and then file COS through consular process? 

4. Will there be denial of H1B application if she enters back with H4?

5. What is the best way here? This vacation is important and we have already booked tickets and made Visa stamping payments already for dropbox. We would like to go and come back as we are going after 3 years.

Kindly help me to understand here. Quick response is really appreciated. Thanks

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