H4 Denied with revoked old H1B petition, but application submitted with new Approved HB petition

Hi,
Seeking advice for the case below to apply MTR. What are the options to restore the H4 status?

H4 extension denial Sep 2021 for minor kid - I94 expired - Aug 2019. Looks like this is USCIS Error, because they did not look at the approved H1B approval notice from new employer.

Case history:

  1. First H4 extension applied in Apr 2019 with my spouse H1B approval, biometrics completed for both( I was in H4 status in 2019). In the same year, my h1b got picked in the lottery and had to submit a request to change its status from H4 to H1. So my H4 status is withdrawn. When this withdrawal happened for me in November 2019, my son’s petition also got withdrawn, since it was tied to my petition as beneficiary - Filed by Employer Attorney
  2. Second H4 Extension applied in May 2020, delivered to USCIS, but did not get the receipt notice for more than 10 months. Lockbox and status enquiry done, but nothing progressed. Could not track the application - Filed by Employer Attorney
  3. This year, I changed my H1B employer ( h1b transfer ) and applied for H4 Extension online with the new H1B approval notice with new employer - Jan 2021. - Online application
    I received a denial notice mentioning my h1B is revoked from my previous employer and h4 does not qualify for extension.
    Document evidence submitted for online application is my latest h1b approval notice from my new employer which is valid till 2023. But the denial below is based on referring to my old revoked petition from my previous employer.
    Has anyone in a similar situation applied for MTR and got approved? Trying to figure out the next steps.

USCIS Response:
You are requesting an extension of stay as a dependent of a nonimmigrant worker based on a Form I-129, Petition for a Nonimmigrant Worker, EAC… that was filed on behalf of ----, your parent and principal nonimmigrant. As a dependent of a nonimmigrant worker, your status is subject to the principal nonimmigrant’s status. USCIS records show that the principal alien’s Form I-129 was revoked on August 18, 2021.Since the Form I-129 and concurrent extension of stay or the principal nonimmigrant was revoked, you do not qualify for the requested extension of stay. if you disagree with this decision, or if you have additional evidence that shows this decision is incorrect, you may submit a motion to reopen or a motion to reconsider by completing a Form I-290B, Notice of Appeal or Motion

MTR will reinstate your H4 kid’s status. Please work with your immigration lawyer to appeal and draft a detailed letter explaining the timelines. Normally H4 cases are easily resolved in such scenario and USCIS do not take hard stand specially against kids on H4.

Thanks Kalpesh. Checking