Thanks mom for an honest reply. I appreciate it.You were already out of status as at the time USCIS accepted your asylum application. The clause about failure to maintain status was through no fault of of the applicant or for technical reasons is not applicable in your case - your original package sent on 03/23/2016 was an incomplete package which got rightly rejected. And even if the original package was complete, and not rejected, it was received on 03/28/2016 - two days after you had gone out of status. So you did not fall out of status or failed to maintain status through no fault of yours or for technical reasons.
In terms of if you should proceed with a DV based AOS application or not, I wouldn't discourage it, if you can afford it of courses, knowing the application could end up being denied for not having a valid status to AOS from. At the same time, your asylum application could end up being approved while your DV based AOS application is pending - which will effectively nullify the out of status issue in that case.
Nevertheless, I will definitely give it a shot and i hope I’ll get lucky.
I didn’t quite understand how would my asylum case get approved like you’ve mentioned above if i get called for AOS Interview.
Thanks again