COS H1B to B2 to H1B

[Sri_4994]

Urgent !! 

I'm currently in H1B - 60 day grace period. I got laid off recently by Employer A on Jan 20th but they were running my payroll until March 20th and my employment verification letter also says last working day as March 20th. However, as part of H1B transfer, my new employer B says it's best practice to consider Jan 20th as employment termination date ( 60 days grace period start date). Due to this they are asking me to file COS to B2 (I-539) and withdraw once H1B is approved. They need B2 COS receipt before filing H1B petition. 

1. What are the limitations/consequences in the future if I do COS to B2 and withdraw after H1B approval ? Since I will be withdrawing the COS application, I wonder if there is going to be any history of being converted to B2 and then to H1B in the records. 

2. My wife is working on H4-EAD, so do I need to file COS to B2 for her as well ? I assume yes, in that case would she be eligible to work until B2 application is withdrawn ? or will she be considered in B2 status as soon as we get the receipt ? 

3. What status we will be in when both H1B and COS to B2 (I-539) are filed. 

4. I may have another offer from employer C, so considering all the above from employer B, I'm thinking to accept offer from employer C but due to time constraints, it's getting difficult to decide.

Appreciate any help.

Thank you.

Sri

Edited April 5, 2023 by Sri_4994
To add more clarity