Similar thing happened to me
Similar thing happened to me while renewing my H1B and wife's H4. My employer did not pay the visa fee for my H1 and INS rejected both my H1 and wife's H4 (No indication on website, neither a notice in mail). Meantime wife found a job and employer applied for her H1b. H1b approval came with a note "Status change denied because, not holding a valid visa at the time of application....(since no h4 at the time). Lawyers fought the case with help from senators and got it resolved. Also, had no efefct on my I-140 case as I got approval last month. 485 is still pending so no idea about that.