Depends on how long since she has had the H1. It is acceptable to not work for the employer for 30 days after initial entry to the US before starting the job, or 60 days if already in the US and changing status to H1.If she didn't go to work she is no longer in H1 status.
If she plans to work for the H1B sponsor soon, put "H1B/pending AOS". If not, just put "pending AOS". That's what I put for my first and second EAD applications respectively (based on advice from the lawyer) and got them approved in a month.1) What should I put for Question # 15 of I-765 application ?