1. For the Yes/No questions on I-485 form, I have answered all "No" at the time of filing as I was not even aware of this situation. I have no intentions of mis-stating the fact during interview and would like to mention it. But my question is would this be considered as un-authorized employment ? Should I say I'm not sure of this but mentioning it ?<br>
2. Also, after doing some research, looks like there is an exemption based on INA 245(k) and my case seems to be falling into this. Below is the link I was referring to. Am I correct in assuming so ?

I have I-140 and I-485 pending. H-1B ended on May 2018 and applied for extension which is pending.
Spouse entered US under parole status and is valid till December 2018, H4 visa has expired in May 2018
Can spouse apply for H-4 extension after approval of H-1B extension? If so can it be done from USA or have to travel abroad for H-4 visa stamping?

I had my H1 visa extension stamping appointment on Feb 21, 2018. Initially it was put under Administrative Processing and later on May 23rd my petition was send back for revocation. As per the inquiry with embassy they told me that "Based on the documents you submitted and the information elicited in your interview with a consular officer, you were determined ineligible for an H1B work visa. Your petition was returned to the Kentucky Consular Center (KCC) on May 24. Currently H1 status website shows KCC received the application on June 8. Once KCC receives a petition, it is returned to the approving USCIS office for review and possible revocation. At this point, USCIS can either reaffirm the petition or issue a notice of intent to revoke it. What are the options available with me now?