H1B : H4 Issues

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My friend has H4-EAD till next month, January 2021.  She was working for Company A on H4-EAD from 2019.  She applied for the H1B lottery via Company B in April and it got approved effective Oct 1 2020.  Unaware of H1 approval, she also applied for H4 & EAD extension. Company B did not place her or pay her any salary.  So, she continued to work for Company A on H4-EAD till last week.  However, she was told that her status got changed to H1 as of October 1 and she should not be working on H4 EAD anymore.  She immediately resigned last week.  Questions are 
1) Was her H1 active on October 1, even though she did not join Company B, did not work for them and did not get paid by Company B?
2) From October 1 till last week, she worked for Company A using H4 EAD which is still valid for another month.  Is there a problem with this?
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