L1B to H1B to greencard queries


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I am currently on L2 (Spouse is on L1B).  My spouse's company requested for L1,L2 extension and we now have a valid visa till May 2021.  Our 5 year term ends in DEC-2021.

We both want to come out of this L1/L2 situation.

1) If my spouse's company agrees to file a greencard for him and if the I-140 is received before DEC-2021, can we continue to stay in US even after DEC-2021 or do we have to go back to home country as the L1B 5 years will be complete by DEC-2021?

Is it okay to switch (COS) from L1B to H1B when greencard is in processing stage?

3) If applying H1B  is mandatory to stay in US, and if his H1B is applied in April-2021, will that have a CAP (as it will his first time applying H1B)? 


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