221g with Visa cancelled without prejudice

[lagboyus]

My spouse got her H1B approval from a consulting company here when she was a dependent on H4. She never had H1B visa stamped on her passport except for a L2 and H4 as a dependent. Her employer led her to believe that she can apply for Visa revalidation at St. Louis/DC and made us to apply for that. After that I have been following the tracker here and other posts to see if there is any similar case. What we understood from the forum is that H1B revalidation is only for those with a valid H1B stamping earlier and/or for an extension but not for change of status cases like H4 to H1B.

With that background, now we got a 221g from St louis saying they can not grant the visa and she has to get one from overseas. The put a stamp with Ink on both the earlier visas L2 and H4 saying "CANCELLED WITOUT PREJUDICE"

Our queries are rather compounding and confusing us to decide what to do now.. We would like to know your suggestions.
what is her status now?
Is she continue to hold her H1B with what ever I94 she got from INS with her H1B.
Can she continue stay in USA until she gets a chance to visit overseas and keep working?
Does she need to travel to home country only, or Can she get it stamped from Canada/Mexico. ?
Also, rather silly question it could be, We understand that when she travel overseas she has to return the current I94 to immigation. But
What is the impact of no valid visa on passport in domestic travel. I mean, Can she travel by domestic air? Is there any security concerns Airlines might rise?
I think she can continue to user her passport as ID..

 

[ginnu]

My spouse got her H1B approval from a consulting company here when she was a dependent on H4. She never had H1B visa stamped on her passport except for a L2 and H4 as a dependent. Her employer led her to believe that she can apply for Visa revalidation at St. Louis/DC and made us to apply for that.

After that I have been following the tracker here and other posts to see if there is any similar case. What we understood from the forum is that H1B revalidation is only for those with a valid H1B stamping earlier and/or for an extension but not for change of status cases like H4 to H1B.
------- you are corect
With that background, now we got a 221g from St louis saying they can not grant the visa and she has to get one from overseas. The put a stamp with Ink on both the earlier visas L2 and H4 saying "CANCELLED WITOUT PREJUDICE"

Our queries are rather compounding and confusing us to decide what to do now.. We would like to know your suggestions.
what is her status now?
----- if she has got I-94 attached with her H1 then she is on H1 till the I-94 expiry date
Is she continue to hold her H1B with what ever I94 she got from INS with her H1B.
---yes
Can she continue stay in USA until she gets a chance to visit overseas and keep working?
----she can stay till I-94 validity may be also possible to file extension but for reentry to USA she has to get H1visa stamp from her home country US consulate
Does she need to travel to home country only, or Can she get it stamped from Canada/Mexico. ?
----- she can try but if visa stamping rejected then she has to go to her home country directly from Canada/Mexico she cant enter US from Canada/Mexico
Also, rather silly question it could be, We understand that when she travel overseas she has to return the current I94 to immigation.
------- when you depart US you surrnder all yourI-94
But
What is the impact of no valid visa on passport in domestic travel.

I
mean, Can she travel by domestic air?
----- yes, has she driving licence to show as ID?
Is there any security concerns Airlines might rise?
I think she can continue to user her passport as ID..

--yes