Old H4 approval not received but recent H4 extension got approved


I am on H1b visa, i140 approved. I am facing a strange issue (or so i believe).

My wife came to US first time in Apr 2017. I transferred my H1b from company A to company B and it got approved on 27th Dec 2017 till 8th Mar 2020.

I was under the impression that H4 is dependent on H1b and that there wont be a separate i797 for H4, so didnt even wait for that.

In feb 2018 and Apr 2018, we went out of USA and came back and there was no issue.

Our visa stamping expired on Aug 29 2019, but we didnt go out of USA after that till now.

Now i filed for another extension in Feb 2020 for H1b and H4 and both got approved till Dec 2020.

At this time Attorney did not ask for my wife’s previous i797 so everything was still going well.

Now when i started filing for my extension beyond Dec 2020, attorney asked for the old i797 but i dont have the H4 approval for the H1b that was approved on Dec 27 2017.

Now situation is that our visa stamping was expired on Aug 29 2019, my H1b visa status was always OK.

Moreover the status on USCIS website for that old case is still showing as “CASE WAS RECEIVED”.

Now when we contacted USCIS they are telling that H4 extension was denied on Dec 27 2017.

Does this mean that my wife will be considered Out of status from Aug 30 2019 to Mar 8 2020?

What are our options? Any help would be much appreciated.

If the H4 Extension was denied, then, yes, your wife was out of status.