There is precedent in the 4th Circuit. The case is Kia v. INS (1999?). Under it, USCIS still has jurisdiction even after a case has been filed. So USCIS can even deny the application, as they tried to do with me. It will not be overturned until someone has to make an appeal.
However, the Kia decision was based on a case in the 9th circuit. However, the Kia decision, the basis for the 9th circuit case was distinguished and overturned by the 9th circuit itself in Hovsepian. So since the legal basis for the Kia decision doesn't exist anymore, I would think that there is a good chance to overturn it, especially since most district courts in other jurisdictions, including the highly influential DC district, have followed the Hovsepian decision.