Answer 1. In my opinion, you are not violating your status. The USCIS interpretation of CPT is flawed. In my opinion, CPT should be available as long as the course requires. That is true even if the CPT goes on for several years.
Answer 2. In the worst-case scenario, if the government continues in their illegal interpretation of the CPT rules, they can make you go outside the United States for H-1B visa stamping. I do not see how the consulate can deny a visa on the grounds of using CPT. You have done everything by the book.