H1B Transfer consular processing?

H1B 60 days grace period ended on 06/14/2020 and the expiration date on this H1b visa is 06/28/2022. New employer A initiated H1B Transfer and from this new receipt number when tracked on USCIS website, it says “On July 2, 2020, we received your Form I-129, Petition for a Nonimmigrant Worker”. Does that mean my package was received by USCIS after the 60 days grace period and I was out of status in between?

While this is in process, I have employer B filing my H1B transfer within the next 2 weeks. Will my H1B transfer application with employer B considered under consular processing? If so, do I have to leave the country and get my visa stamped with employer B’s I-797 and start work? As the US consulates in India and Mexico are not open now, what are my options? (I will have employer A withdraw my H1B transfer once employer B’s H1B transfer was approved)
Can someone please advise what’s best to do?