Hi ABHINAV
I my case , USCIS stated that no initial documents were submitted for H-4.
My immigration lawyers told me that they are seeing these kind of rejects more often now.
He says it could be because:
USCIS now separate out h4 application from h1 and process them independently ( since h4 application depends on completion of biometric)
And when separate out the application they are messing up with documents sent for h4
In my case my spouse had a valid I-94 and hence we reapplied and it got approved ( but this time it took at least 6 months for approval )