H1B approved but change of status denied due to being outside of USA

My Wifes H1B was initially denied but she submitted a request to reconsider and it was approved a year later. But by the time she got her approval notice she left the US because her 3 years of OPT were over.

The approval notice is a I-797C form stating that her H1B was approved and change of status is denied because of her being outside of USA and also that the documents were sent to consulate in India. This was back in 2020 and the H1B was approved only for 3 months and all the consulates were closed due to Covid and she was not able to go to interview to get her visa.

Now she is in US on H4 visa and she is looking to transfer her unused and expired H1B to a new employer.
I want to know if it is possible to get a H1B transfer based on the old I-797C approval from even though it stated that the change of status was denied. What are her options here.

If her H1B was approved via lottery/cap-subject, any H1B sponsoring employer can file a new cap-exempt H1B for her and can be extended for the any unused period from 6 years.

Thanks for the reply. Does her employer just have to apply for H1B transfer using the old I-797C approval notice or do they have to do anything extra because it states the change of status was denied on her approved I-797C.