DS160 - Previous Visa case Denied Question

Hello Sir, we are planning to travel to India and we need to get our H4 visa stamped.

In 2019 my husband filled for an transfer of work permit with a Company B and along with it our H4 extensions were filled. Later on he decided to continue with his current organization, as a result of which, the new company B withdraw his H1B transfer petition.

we were under the impression that since the H1 was withdrawn it will automatically also take care of the H4 petitions linked with it, but that was not the case and later we got a Denial notice for the H4 petitions filled due to missing out on the finger printing appointment.

Although we had another approved H4 petition and have not overstayed our legal presence in the US, While submitting the DS160 should be be answering “YES” for the question "have you ever been refused a U.S. Visa, or been refused admission to the United States, or withdrawn your application for admission at the port of entry? " for this particular case? If Yes, what should we enter as reason in the column that comes next? and will it impact the H4 visa in any way?

Or selecting “NO” as a option to that question should be fine?

Summary

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This should be ‘NO’ in your case as the question is specific to visa and not transfer or extension of status petition.