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COS Filed, H1b Withdraw but I94 expired

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  • COS Filed, H1b Withdraw but I94 expired

    My Wife is employee of company X and her I94 got expired on June 30 2017. Extension was filed before expiry but the case is still pending with USCIS. She is now not on payroll as 240 days are over.
    I have filed a COS for her from H1 to H4 & EAD (on my H1 which is also under processing with USCIS and I-140) on Mar 15 2018.
    Now X is saying, she need to resign and once resigned, they will WITHDRAW her H1 application which is pending with USCIS.

    1.Will she be considered as "Out of Status" from July 01 2017 to March 15 2018 because X would withdraw the pending petition? Will it create a void/vacuum for this period?
    2.Although we have filed CoS from H1 to H4 for her before the withdraw, does she need to travel back to India before withdraw of H1 or can she stay in US?
    1.If she don't travel back will her status be "unlawful presence" and might have that > 180 - 3 yr ban rule if she don't travel?
    3.Does the New 60 day revoked/withdraw H1B Rule applies as we applied for COS b4 withdraw but after I94 expiry?

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