H4 to H1 status not updated by USCIS

[arun0011]

My wife got here H1B approved last year. We went to get her SSN recently, but the officer informed us that since USCIS hadn’t changed her status from H4 to H1 she cannot get her SSN. So, we went to the local USCIS field office to get her status changed but the person over there had no idea how to do it. He suggested leaving the country and while returning showing the I797 to get the status changed. If my wife were to do that, she'll have to go to India and come back, which I would like to avoid at present.
Her employer says that the USCIS officer should be able to change her status since they made a mistake and didn't change the status once the I797 was approved.
Has anyone else experienced the same issue? If so, what did you do?

[txh1b]

If it was an USCIS error, they would amend the petition free of charge. May be they need a new I129 for amending it.

[arun0011]

The person at the USCIS office didn't say anything about filing a new I129. He said he didn't have access to my wife's details and had no way to edit it.