Did you confirm it with your attorney that they have received a new i94 with H1B extension?
You never told it in earlier answers.
yea received H1 approval with i-94 (09/18/2018 - 08/31/2021)
Not sure how they approved it when i was having valid H4 (02/01/2019 - 09/09/2019)
USCIS tales weird decisions.
But, your Employer has already filed for withdrawal.
Your status will be in trouble now.
My suggestion is to go out of US and enter using H4 visa to fix all issues.
Thanks for your answers anil, Yes i am leaving in the next week.
one last question - what would I have to mention my current status as on DS-160 form? H1 or H4?
You should mention the status same as you are applying the visa stamp for.
If you are applying for H4 stamp, you have to write H4.