i still dont get how come you (raevsky) keep telling people that if they did AOS they would be fine. rules are rules. if you did not include your child in initial applications, it doesnt matter if you do AOS or CP, you would still, most likely, face the denial.
There are laws and agency regulations.
Both DOS and USCIS follow laws.
But USCIS does follow DOS's regulations, in the same was as DOS does not follow USCIS's regulations.
So, DOS follows laws and DOS's regulations. USCIS follows laws and USCIS's regulations. That is it. Agencies are indenendent one from another. This rule is needed to avoid power struggle between agencies on the border of their influences.
There is no law to disqualify an entry if child is not listed. But there is a regulation issued by DOS. Because USCIS does not follow DOS's regulations, there is no reason for USCIS to disqualify those entries. There is no regulation of USCIS about that.
DOS knows that USCIS does not follow DOS's regulations and that is why this DOS's policy states:
Instances have arisen where DV winners who were advised not to make an application at a post abroad have then entered the United States and requested adjustment of status processing at the Department of Homeland Security (DHS).
to make sure that at least in that case (when initial application was done via CP) DOS will not allow AOS to be done and DOS's regulations to be ignored by USCIS. DOS does not have authority to interfere though if AOS was requested from the very beginning, so in this case USCIS can be assured that unauthorized DOS's regulations would not prevail.
The law says that DV lottery winners could do AOS. So, USCIS is authorized to adjust status of DV winners. Of course, USCIS does not ask DOS whom to adjust and whom not to adjust, that is USCIS's job and responcibility. USCIS has it's own regulations about AOS, and there is nothing there about not listing children in the initial entry. The fact that DOS administers the program does not mean that it could issue regulations that have to be honored by other government agencies. Instead, that means that DOS defines the order how DV lottery is done and in what order it passes the files to USCIS for AOS. Then USCIS operates according to laws and it's regulations, very much independently from DOS.