Lawfull status confusion owing to L1 Denial and H4 Pending

My L1A based I-94 was expiring Nov 2020, and L1A extension was filed ahead in October. Owing to a RFE on L1A extension, to be safe, I also filed a H4 based on my spouse’s H1 in Dec 2020 (note: H4 petition is filed post i-94 expiry, and while L1A extension in progress).

My L1A extension was denied post RFE response in March 2021. H4 attorney suggests that H4 would deny too owing to gap is status as H4 was filed post I-94 expiry though while L1 extension was in progress, but since it is denied, and recommends I travel out of USA and get H4 stamping.

Please help me understand,

  1. If my current stay counts as lawfull
  2. Is the H4 petition invalid owing to it being filed post I-94 expiry (Note: L1A extension was in process during this time, which is later denied).
  3. Is it really recommended to travel out of USA and get H4 stamping. Considering the current pandemic situation and various restrictions around I am a bit concerned on this. I am a indian citizen, and it appears Covid situation there is getting bad.
  4. My L1 Visa and petition are both valid till Dec 2021, will the denial of extension also invalidate the current visa expiry, or can i use this to get a new i-94 via border crossing.

Please help.