H1B Approved via Consular Processing

My spouse had her H1B Amend/extn approved through Consular processing back in Sep 2020. It was due to change of location from one state to another. Rest all remain the same. She got i797B but we didn’t notice. Her employer didn’t notice either. No consulate/POE was mentioned in the approval notice It was her employer’s mistake in the way they filed which resulted in i797B. We noticed just a week ago about it and asked her employer. Her prior H1/Visa/I94 is valid will June 2021 with the same employer.

We filed for my I485 as downgrade case in Oct 2020 along with EAD/AP. We didnt receive any approvals for EAD/AP (Got just receipts for both of us).

Her employer is saying that they will now again file for H1 Amend/Extn and get his corrected. Our questions are below:

  1. Is she considered out of status from Sept 2020?
  2. Has she accrued any unlawful presence?
  3. Will this become a problem during I485?
  4. Is going to Mexico border (Laredo et,al) and entering back with updated i94 a better option? (Its been >180 days since she got her i797B approved)

Any update? Did she visit Mexico for getting an updated I94 based on I797B?
It would be great if you could share your experience.