I’m afraid that you are misconstruing it. As I understand it means one would loose the time where he/she was out of legal status in their legal 6 year H1 cap i.e., when H1B 6 year cap/limit is computed it includes both legal stay plus out of status stay time. Also one more annexure to the out of status time is the time when one had legal status but under different visa like H4/F1/B1 any combination you can come up with.
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* My case details:
* PD: 10/28/2003.
* Category: Eb2 / RIR.
* State: FL
* Pre PBEC Status: Completed SWA screening and moved to ATL DOL on/ * around 07/2004.
* 45 day letter: Received in 03/2005 and replied around 03/24/2005.
* BEC Case# P-05013-XXXXX.
* Current status: GOD knows!!.
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/***
* My case details:
* PD: 10/28/2003.
* Category: Eb2 / RIR.
* State: FL
* Pre PBEC Status: Completed SWA screening and moved to ATL DOL on/ * around 07/2004.
* 45 day letter: Received in 03/2005 and replied around 03/24/2005.
* BEC Case# P-05013-XXXXX.
* Current status: GOD knows!!.
*******