New H1 got RFE while H4 extension is pending


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I'm in the USA with an H4 visa and my I94 expires on Jun 4th, 2020. But my H4 extension has been filed before expiry i.e May 28th, 2020. My Kid's H4 also filed along with my case.
I got an employment opportunity, the employer applied h1 for this year's quota. however, I received an RFE for my H1 application for Education evaluation. My employer's attorney prepared to answer RFE but mentioned to me that I need to withdraw my pending H4 as soon as H1 approves.

My Questions are:

1. What happens to my Kid's status if we withdraw the H4 application, Will she becomes Out of status as there is no active application since June 4th (That was the I94 expired with the previous H4)

2. Can we proceed to apply new H4 for my kid alone after withdrawing my current H4 application? If so, Can it be considered as a legal stay for the period from June 4th to the new H4 application date?

Thanks in advance, Your suggestions greatly helps me.

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