The petitioner needs to become a naturalized citizen in order to overcome that ground of ineligibility.
The beneficiary is not an "immediate relative" of a USC. She is in the family based second preference (F2A) visa category: spouse of an LPR. As such, she cannot fall out of status and cannot have unauthorized employment and qualify for adjustment of status. If she has not attained over 180 days of unlawful presence, she might be able to go abroad for Consular Processing and get a visa. However, that is probably unlikely and she would probably invoke the unlawful presence bar to re-entry for 3 or 10 years. See a lawyer.