H1B 221-g case resolved. I am in USA on H4 visa

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I received a 221(g) notice on my H1B visa stamp on September 23. As my case was experiencing delays, I opted to apply for h4 visa and travel on an H4 visa. I got an H4 visa and traveled on H4 visa. Recently, I received an email from USCIS stating that my case has been resolved and instructing me to submit my passport. However, I am currently in the USA on H4 Visa.
Currently my visa status still shows refused.
I'm contemplating the next steps – should I travel back to my home country to obtain an H1B visa stamp, or is it advisable to stay here and apply for a Change of Status (COS) to H1B?
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