H1B application RFE regarding pending H4 change of status

I was on cap exempt H1B visa till two and half months ago ago but left the job and applied for H4/EAD change of status based on my wife’s H1B. My H4 application is still in process and I am staying in US. I recently got another job and my employer applied for my H1B visa with premium processing. My employer got RFE asking for 1) “Provide the status of the beneficiary’s Form I-539, which is currently pending” regarding H4 change of status. My employer has asked for a letter from me addressing USCIS to request either withdraw or approve H4 and 2) spouse’s latest pay stubs. Its very confusing situation to me not sure if I did something wrong. Was I suppose to apply for H1B from outside of US while H4 application is pending. Any suggestion, opinion or past experience will be appreciated. thx

Well, it is all about timing and how you should have applied. There is nothing wrong in applying either way, all you need to make sure is to have proper proof and indicate that you were not violating status.
All you need to do is submit the request documents indicating your status and you have maintained your status all the time, it should be fine. You should discuss with your employer on your situation of status and act accordingly…Talk to them and follow their advice…If they indicate any issues, you can exit the country and get stamping on H4 and then re-enter…