H1B Extension RFE pending - My options in case of denial

USA H1B Visa
1

My premium processing H1B extension petition received an RFE on Feb 5.
Lawyers responded to the RFE on Feb 25.
It’s been 10 days since then, and I haven’t received a result yet.

My question is about my options in case of denial -
My I-94 expires on March 31.
I’m trying to avoid exiting the country in order to get H4.

Scenario 1: H1B extension denied before March 31

  1. I can apply for a new H1B petition but can’t work after March 31
  2. I can apply for H4 COS (spouse is on H1B)
  3. I apply for both H1B and H4 COS. If H1B is approved later, I withdraw the H4 application. If H1B is denied again, I can wait for H4.

Scenario 2: H1B extension denied before March 31

  1. I don’t want to exit the country to get H4. Hence I apply for H4 COS before March 31, and if H1B is approved later, I withdraw the H4 application.
  2. Apply for another H1B petition after March 31 and hope it gets approved.

Can you people provide me with your expert opinions on my best course of action here?
I want to be prepared for the worst case scenario, but also want to avoid accruing illegal stay.

Thank you for reading.

2

Even I am in the same situation with different dates. Got RFE and employer will be responding in a week. My I 94 expires May 3rd. I am not sure whether we will get time to apply another H1 as it needs LCA to be files first. That will take couple weeks and then applying H1 will take around a week. We should make sure to get the receipt number before the expiry date. Please let me know if you got any leads and how you are handling the situation.
Thanks.