Dear @Sm1smom , thank you for your explanations. No I'm not on a visitor's visa and my intention was not to file AOS from the beginning. I was approved to a US university in Nov 2020 and my visa arrived very late so that I had to defer to this semester (typical background check for Iranian's, for 50 days). After my first interview in US embassy Milan, I realized that I'm a winner of DV. So I started filling out the DS260. I again did my second interview in Milan's embassy for F1 visa (and again went through the security check, this time more than before, almost 3 months) and currently I'm on F1 visa.So you charged yourself to the wrong country. For CP, it is an automatic denial - the COs are more vigilant about such things. AOS is iffy, the IO may or may not catch the wrong chargeability country and subsequently approve the case. However if that were to happen, the GC can still be revoked if the erroneous approval is later on discovered. I can't help you decide if you should continue processing or basically stop at this point, this is your call.
By the way, it seems to me you came into the US on a visitor's visa with the preconceived intent of filing AOS, right? Well that is another potential issue the IO may scrutinize. Anyway, your case, your call.
If I file I485 and I'm denied , will it have a negative effect on my F1? or a negative impact if in the future I want to file a NIW?
Thank you